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| The face value of a bond, or the amount that's returned to the bondholder at maturity, it's also referred to as the bond's denomination |
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| The length of time until the bond issue returns the par value to the bondholder and terminates the bond |
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| The annual rate of interest to be paid out on a bond, calculated as a percentage of the par value |
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| A legal agreement between the firm issuing a bond and the bond trustee who represents the bondholders |
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| A bond provision that gives the issuer the right to repurchase, or "call," the bonds from their holders at stated prices over specified periods |
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| A bond provision stating that the bond can't be called until a set number of years have passed since it was issued |
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| A fund to which the bond issuer deposits money to pay off a bond issue |
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| Bonds issued by corporations |
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| Any bond that is backed by the pledge of collateral |
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| A bond secured by a lien or real property |
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| Any unsecured long-term bond |
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| Bonds issued by government agencies other than the Treasury |
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| A certificate that represents a portion of owndership in a pool of federally insured mortgages |
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| (Treasury) Inflation Protected Indexed Securities (TIPS) |
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Definition
| U.S. Treasury bonds for which the par value changes with the consumer price index to guarantee the investor a real return (i.e, a return that stays above inflation). These bonds have a maturyity of 5, 10, or 20 years and a minimum par value of $1,000 |
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| Municipal Bonds, or "Munis" |
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Definition
| Bonds issued by states, counties, and cities, as well as other public agencies, such as school districts and highway authorities, to fund public projects |
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Definition
| A state or municipal bond backed by the full faith and credit - that is, the taxing power - of the issuer |
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Term
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Definition
| State or municipal bonds that have interest and par value paid for with funds from a designated projeect or specific tax |
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| Bonds, generally municipals, with various maturity dates, usually at set intervals |
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| Bonds that don't pay interest and are sold at a deep discount from their par value |
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| Very risky, low-rated bonds, also called high-yield bonds. These bonds are rated BB or below |
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| The ratio of the annual interest payment to the bond's market price |
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| The true yield or return that the bondholder receives if a bond is held to maturity. It's the measure of expected return for a bond |
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| Interest that has been earned on the bond but hasn ot yet been paid out to the bondholder |
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| The sum of both the quoted or stated price of a bond and the bond's accrued interest. It's the price you pay i fyou buy the bond in the secondary market |
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| Stock that offers no ownership or voting rights and generally pays fixed dividends. The dividends on preferred stock are paid out before dividends on common stock can be issued |
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Definition
| A feature of preferred stock that requires all past unpaid preferred stock dividends to have been paid before any common stock dividends can be declared |
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| Adjustable-Rate Preferred Stock |
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Definition
| Preferred stock on which the quarterly dividends fluctuate with the market interest rate |
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Term
| Convertible Preferred Stock |
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Definition
| Preferred stock that the holder can exchange for a predetermined number of shares of common stock |
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