Bonds & Fixed Income
12 terms
Callable Bond
A bond the issuer may redeem before maturity, at a stated price on stated dates.
Bonds & Fixed IncomeCertificate of Deposit
A negotiable short-term deposit receipt issued by a bank at a discount to face value.
Bonds & Fixed IncomeClean Price
A bond's quoted price excluding accrued interest.
Bonds & Fixed IncomeCommercial Paper
A short-term unsecured promissory note issued by a company at a discount to face value.
Bonds & Fixed IncomeConvertible Bond
A bond that can be exchanged for a fixed number of the issuer's shares at the holder's option.
Bonds & Fixed IncomeConvexity
The curvature in the relationship between a bond's price and its yield, correcting duration's straight-line estimate.
Bonds & Fixed IncomeCorporate Bond
A debt security issued by a company to borrow from investors rather than from banks.
Bonds & Fixed IncomeCoupon Rate
The annual interest a bond pays, expressed as a percentage of its face value.
Bonds & Fixed IncomeCredit Rating
An agency's opinion on an issuer's ability to meet its debt obligations, expressed on a letter scale.
Bonds & Fixed IncomeCredit Risk
The risk that a borrower fails to make interest or principal payments as promised.
Bonds & Fixed IncomeCredit Spread
The extra yield a bond offers over a government security of the same maturity, compensating for credit risk.
Bonds & Fixed IncomeCurrent Yield
A bond's annual coupon expressed as a percentage of its current market price.