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6 Cards in this Set
- Front
- Back
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Risk structure of interest rates
Page 124 |
The relationship among interest rates on bonds that have different characteristics but the same maturity. This can be seen with the bonds and their ratings.
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Default risk (or credit risk)
Page 124 |
The risk that the bond issuer will fail to make payments of interest or principal.
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Bond rating
Page 125 |
A single statistic that summarizes a rating agency's view of the issuer's likely ability to make the required payment on its bond.
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Municipal bonds
Page 130 |
Bonds issued by state and local governments. These bonds are not subject to any taxes.
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U.S. treasury bonds
Page 130 |
These bonds are only subject to federal government taxes.
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Corporate bond
Page 130 |
These bonds are subject to both state and local taxes as well as the federal government taxes.
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