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Definition
| Long term debt obligations issued by corporations and government units |
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Term
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Definition
Issued by the US Treasury to finance the national debt and other federal gov't expenditures
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Term
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Definition
| Zero-coupon securities ares sold with claims on US treasury bonds held in a trust |
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Term
| TIPS - Treasury Inflation Protection Securities |
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Definition
- Intended for investors who seek inflation protection with their investments
- Coupon rates less than other treasuries
- Principal value adjust for the US inflation rate every 6 months
- Coupon income increases with inflation |
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Term
| Auction Cycle for US Treasury Securities |
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Definition
| For coupon securities, the gov't holds monthly 2 year and 5 year note auctions, and quarterly auctions for 10 year notes |
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Term
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Definition
Issued by local, county and state gov't
Used to finance public interest projects
Types
General Obligation Bonds (GOB) - issued by a municipality and secured by taxes
Revenue Bonds - Issued by municipality and secured by future user charges
Industrial Development Bonds - Public financing of private business
These bonds are NOT default free |
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Term
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Definition
FV = $1000
Usually pay interest semi-annually
Most have maturities between 10-30 years
Secured by collateral
Assests - real and financial
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Term
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Definition
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Definition
| The legal contract that specifies the rights and obligations of the bond issuer and the bond holders |
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Term
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Definition
| Bonds with coupons attached to the bond. THe holder presents the coupons to the issuer for payments of interest when they come due |
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Term
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Definition
| A bond in which the owner is recorded by the issuer and the coupon payments are mailed to the registered owner |
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Term
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Definition
| bonds in which the entire issue matures on a single date |
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Term
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Definition
| Bonds that mature on a series of dates with a portion of the the issue paid off on each |
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Term
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Definition
| bonds issued to finance specific projects, which are pledged as collateral for the bond issue |
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Term
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Definition
| Bonds backed solely by the general credit worthiness of the issuing firm, unsecured by specific assets or collateral |
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Term
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Definition
| bonds that unsecured and are junior in their rights to mortgage bonds and regular debentures |
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Term
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Definition
| Bonds that may be exchanged for another security of the issuing firm at the discrection of the bond holder. |
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Term
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Definition
| bonds that give the bond holder an opportunity to purchase common stock at a specified price up to a specified date |
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Term
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Definition
| bonds that allow the issuer to force the bond holder to sell the bond back to the issuer at a price above the par value |
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Term
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Definition
| bonds that include a requirement that the issuer retire a certain amount of the bond issue each year |
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Term
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Definition
| a provision on a bond issue that allows the isser to force the bond holder to sell the bond back to the issuer at a price above the par value |
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Term
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Definition
| Bond rated as speculative or less than investment grade by bond rating agencies |
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Term
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Definition
| long term bonds issued and sold outside the country of the currency in which they are demonimated |
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