Term
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Definition
| Stated interest payment made on a bond |
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Term
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Definition
| The principal amount of a bond that is repaid at the end of the term. Also, par value. |
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Term
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Definition
| The annual coupon divided by the face value of a bond. |
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Term
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Definition
| Date on which the principal amount of a bond is paid. |
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Term
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Definition
| The rate required in the market on a bond. |
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Term
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Definition
| A bond's annual coupon divided by its price. |
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Term
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Definition
| The written agreement between the corporation and the lender detailing the terms of the debt issue. |
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Term
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Definition
| The form of bond issue in which the registrar of the company records ownership of each bond; payment is made directly to the owner of record. |
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Term
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Definition
| The form of bond issue in which the bond is issued without record of the owner's name; payment is made to whoever holds the bond. |
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Term
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Definition
| An unsecured debt, usually with a maturity of 10 years or more. |
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Term
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Definition
| An unsecured debt, usually with a maturity under 10 years. |
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Term
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Definition
| An account managed by the bond trustee for early bond redemption. |
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Term
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Definition
| An agreement giving the corporation the option to repurchase the bond at a specific prie prior to maturity. |
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Term
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Definition
| The amount by which the call price exceeds the par value of the bond. |
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Term
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Definition
| A call provision prohibiting the company from redeeming the bond prior to a certain date. |
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Term
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Definition
| A bond that currently cannot be redeemed by the issuer. |
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Term
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Definition
| A part of the indenture limiting certain actions that might be taken during the term of the loan, usually to protect the lender. |
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Term
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Definition
| A bond that makes no coupon payments, and thus is initially priced at a deep discount. |
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Term
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Definition
| The price a dealer is willing to pay for a security. |
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Term
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Definition
| The price a dealer is willing to take for a security. |
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Term
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Definition
| The difference between the bid price and the asked price. |
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Term
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Definition
| The price of a bond net of accrued interest; this is the price that is typically quoted. |
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Term
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Definition
| The price of a bond including accrued interest, also known as the full or invoice price. This is the price the buyer actually pays. |
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Term
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Definition
| Interest rates or rates of return that have not been adjusted for inflation. |
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Term
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Definition
| The relationship between nominal returns, real returns, and inflation. |
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Term
| Term Structure of Interest Rates |
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Definition
| The relationship between nominal interest rates on default-free, pure discount securities and time to maturity; that is, the pure time value of money. |
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Term
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Definition
| The portion of a nominal interest rate that represents compensation for expected future inflation. |
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Term
| Interest Rate Risk Premium |
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Definition
| The compensation investors demand for bearing interset rate risk. |
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Term
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Definition
| A plot of the yields on Treasury notes and bonds relative to maturity. |
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Term
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Definition
| The portion of a nominal interest rate or bond yild that represents compensation for the possibility of default. |
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Term
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Definition
| The portion of a nominal interest rate or bond yield that represents compensation for lack of liquidity. |
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