| coupon | The stated interest payment made on a bond.
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| face value | The principal amount of a bond that is repaid at the end of the term. Also, par value.
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| coupon rate | The annual coupon divided by the face value of a bond.
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| maturity | Specified date on which the principal amount of a bond is paid.
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| yield to maturity (YTM) | The rate required in the market on a bond.
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| current yield | A bond's annual coupon divided by its price.
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| indenture | The written agreement between the corporation and the lender detailing the terms of the debt issue.
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| registered form | 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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| bearer form | 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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| debenture | An unsecured debt, usually with a maturity of 10 years or more.
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| note | An unsecured debt, usually with a maturity under 10 years.
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| sinking fund | An account managed by the bond trustee for early bond redemption.
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| call provision | An agreement giving the corporation the option to repurchase the bond at a specified price prior to maturity.
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| call premium | The amount by which the call price exceeds the par value of the bond.
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| deferred call provision | A call provision prohibiting the company from redeeming the bond prior to a certain date.
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| call protected bond | A bond that, during a certain period, cannot be redeemed by the issuer.
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| protective covenant | A part of the indenture limiting certain actions that might be taken during the term of the loan, usually to protect the lender's interest.
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| zero coupon bond | A bond that makes no coupon payments, thus initially priced at a deep discount.
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| bid price | The price a dealer is willing to pay for a security.
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| asked price | The price a dealer is willing to take for a security.
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| bid-ask spread | The difference between the bid price and the asked price.
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| clean price | The price of a bond net of accrued interest; this is the price that is typically quoted.
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| dirty price | 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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| real rates | Interest rates or rates of return that have been adjusted for inflation.
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| nominal rates | Interest rates or rates of return that have not been adjusted for inflation.
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| Fisher effect | The relationship between nominal returns, real returns, and inflation.
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| term structure of interest rates | 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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| inflation premium | The portion of a nominal interest rate that represents compensation for expected future inflation.
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| interest rate risk premium | The compensation investors demand for bearing interest rate risk.
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| Treasury yield curve | A plot of the yields on Treasury notes and bonds relative to maturity.
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| default risk premium | The portion of a nominal interest rate or bond yield that represents compensation for the possibility of default.
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| taxability premium | The portion of a nominal interest rate or bond yield that represents compensation for unfavorable tax status.
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| liquidity premium | The portion of a nominal interest rate or bond yield that represents compensation for lack of liquidity.
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