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Definition
Issuing or selling security
-Have a maturity
-paid a fixed coupon rate in percentage form (percent of par value) |
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Definition
| The principal amount of a bond that is repaid at the end of the term. |
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Definition
| The amount of the coupon divided by the face value of the bond |
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Definition
| Specified date on which the principle amount of a bond is paid. |
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Term
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Definition
| The interest rate required in the market on a bond. |
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Term
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Definition
| Bonds annual coupon divided by its price. |
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Term
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Definition
| Coupon rate is higher than the YTM rate |
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Term
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Definition
| Coupon rate is less than the YTM Rate |
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Term
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Definition
| Coupon rate equals the rate of the YTM |
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Term
| Difference between a premium bond rate and a discount rate is |
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Definition
| The relationship between the coupon rate and the YTM. |
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Term
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Definition
| Is a bond that pays no coupon and it is offered at a price that is much lower than its stated value. High yield, A+, speaking of Zero Coupon Rate. |
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Term
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Definition
| Relationship between Nominal Return, Real Returns and Inflation |
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Term
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Definition
| It is the real rate plus the inflation premium, expectation price of the bond. It is the percentage change in the number of the dollar? Real rate not adjusted for inflation |
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Term
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Definition
| Percentage change in how much you can buy with your dollar. Buying power. |
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Term
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Definition
Risk that arises for bond owners from fluctuating interest rate in the market and how sensitivity the price of the bond is to those changes. Sensitivity of the bond depends on:
1) Time to maturity – short-term rate are low risk. Longer time to maturity the greater the risk.
2) Coupon Rate – the lower the coupon rate, the greater the interest rate risk.
Increasing the coupon rate decreases the bond value. |
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Term
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Definition
| The Price a dealer is willing to pay |
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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
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Term
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Definition
| A bond that allows the holder to force the issuer to repurchase the security at specified dates before maturity. The repurchase price is set at the time of issue, and is usually par value |
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