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A bond is a fixed-income instrument generating cash flows at some specific dates in the futures. These cash-flows depend on the interest rate of the bond, which can either be fixed or variable. It is a debt instrument acting as a loan made from the buyer to the seller.

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How can QE lower interest rates? Say, if a market has 1000 USD with only 10 citizens in it. Say, everyone is making 100 USD and spending the same. The bank will have 1000 USD as everyone pays using b …
answered Jul 30 '17 by kris123456