When firms issue ____, the amount of interest and principal to be paid is based on specified market conditions. The amount of the repayment may be tied to a Treasury bond price index or even to a stock index.

Question

When firms issue ____, the amount of interest and principal to be paid is based on specified market conditions. The amount of the repayment may be tied to a Treasury bond price index or even to a stock index. ​

Quizplus · Accepted Answer

Structured notes are financial instruments whose returns are based on the performance of one or more underlying assets, indices, or benchmarks. These underlying factors can include stock indices, interest rates, or commodity prices, making the repayment amounts of structured notes variable and dependent on specified market conditions.

When Firms Issue ____, the Amount of Interest and Principal