The government issues securities to cover shortage of funds arising from huge payments to be made, including public investment. The Bank conducts operations related to the issuance and transaction of government securities as well as other services regarding such securities.
The picture above shows a 10-year government bond certificate. It consists of a certificate for claiming the principal (the amount of money the purchaser paid) and 20 coupons for receiving biannual interest payments.
Such physical certificates printed on paper are rarely used today, and government securities are transferred and settled electronically by book entry.
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