Euro CDs
A Certificate of Deposit (CD) is a negotiable instrument evidencing a deposit with a bank. A CD is a marketable instrument so that the investor can dispose it off in the secondary market whenever cash is needed. The final holder is paid the face value on maturity along with the interest. It is used by the commercial banks as short- term funding instruments.
Euro CDs are mainly issued in London by banks. Interest on CDs with maturity more than a year is paid annually than semi-annually.
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