Interest-bearing instruments

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Interest-bearing instruments are securities that pay interest at a specified rate either at periodic intervals or at maturity.

They differ from discount instruments, where the return is earned by the increase in value to the redemption amount, from the discounted amount of the initial investment.


Instruments that are always issued in interest bearing form include Certificates of Deposit.

Instruments that may be issued either in interest bearing form or as discount instruments include Sterling commercial paper.


See also