Term
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Definition
| The face value of a bond. The amount that is returned to the bond holder at maturity. |
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Definition
| The annual rate of interest to be paid out on a bond calculated as a percentage of the par. |
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Definition
| A legal agreement between the firm issuing a bond and the bond trustee, who represents the bondholders. |
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Definition
| A bond provision that gives the issuer the right to repurchase the bonds from the holders at a stated price over specified periods. |
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Definition
| A bond provision stating that the bond cannot be called until a set number of years has passed since it was issued. |
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Definition
| A fund to which the bond issuer deposits money to pay off a bond issue. |
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Definition
| Bonds issued by corporations, generally issued in denominations of $1,000. |
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Definition
| Any bond that is backed by collateral. |
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Definition
| A bond secured by a lien (a registered claim) on real property. |
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Definition
| Any unsecured long-term bond. |
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Definition
| Government of Canada debt that has a maturity of 3, 6, or 12 months. Also the minimum denomination is $100,000. |
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Term
| Government of Canada Bonds |
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Definition
| A government bond with a maturity of 2 or more years. It's minimum denomination is $1,000. |
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Term
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Definition
| Bonds with nominal interest rates, payable semiannually, usually with terms to maturity of 2 to 10 years. |
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Definition
| A bond with an indexed payment designed to adjust to the changes in CPI from the issue date to the date of redemption or call. |
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Definition
| Bonds issued by Crown Corporations rather than by the government. However, they are guaranteed by the government. |
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Term
| Regular Canada Savings Bond |
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Definition
| Redeemable at any time after issue. If redeemed prior to 3 months after the issue date, only the face value is received, after that date, the face value plus any accrued interest is paid. |
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Term
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Definition
| Redeemable only on the anniversary or withing 30 days thereafter. Interest is received each year on redemption. |
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Term
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Definition
| Bonds that do not pay interest and are sold at a discount from their par value. |
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Term
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Definition
| Very risky, low-rated bonds, also called high-yield bonds. These bonds are rated BB or below. |
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Term
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Definition
| The ratio of the annual interest payment to the bond's market price. ANNUAL INTEREST PAYMENTS / MARKET PRICE OF THE BOND. |
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Term
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Definition
| The true yield or return that the bondholder receives if a bond is held to maturity and interest payments are reinvested at the yield to maturity. It is the measure of expected return for the bond. |
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Term
| Approximate Yield to Maturity |
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Definition
| ANNUAL INTEREST PAYMENTS + (PAR VALUE - CURRENT PRICE) / (PAR VALUE + CURRENT PRICE)/2. |
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Term
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Definition
| Interest that has been earned on the bond but has not yet been paid out to the bondholder. |
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Term
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Definition
| The sum of the quoted price and the accrued interest. It is the price you pay if you buy the bond in the secondary market. |
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