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39 Cards in this Set
- Front
- Back
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Bond
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A long term liability with a specified amount of interest and specified maturity date
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Principle
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The amount owed; the face value o the debt
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Maturity Date
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The Time at which a debt issue becomes due and the princple must be repaid
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Interest
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Payment for the use of money
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Coupon Rate
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The Specified interest rate or amount of interest paid by a bond
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Current Yeild
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Annual Income divided by the current price of the security
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Yield To Maturity
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The Yield earned on a bond from the time it is aquired until the maturity
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Yield Curve
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The Relationship between time to maturity and yields for debt in a given risk class
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Indenture
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The document that specifies the terms of a bond issue
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Default
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The failure of a debtor to meet any term of a debt's indenture
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Trustee
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An appointee, usually a commercial bank, responsible for upholding the terms of a bond's indenture
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Registered Bond
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A bond whose ownership is registered with the commercial bank that distributes interest payments and principle repayments
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Bearer Bond/Coupon Bond
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A bond with coupons attached or a bond whose possesion denotes ownership. The coupons are turned in for interest payments
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Credit rating System
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Classification schemes designed to indicate the risk associated with a particular security
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Confirmation Statement
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Statement received froma brokerage frim that specifies a purchase or a sale of a security
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Accrued Interest
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Interest that has been earned but not received
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Flat
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A description of a bond that trades without accrued interest
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Mortgage Bond
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A bond that is secured by property, especially real estate
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Equipment Trust Certificate
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a serial bond secured by specific equipment
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Securitization
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The process of converting an illiquid asset into a marketable security
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Debenture
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An unsecured bond
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Income Bond
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a bond whose interest is paid only if it is earned by the firm
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Convertible Bond
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A bond that may be exchanged for comon stock
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variable interest rate bond
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A long term bond with a coupon rate that veries with changes in short term rates
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Zero Coupon bond
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A bond on which interest accures and is paid at maturity, and is initially sold at a discount
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Eurobond
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A bond denominated in U.S. dollars but issued abroad
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High-Yield Securities ( Junk Bond )
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Non Investment grade securities offering a high return
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Fallen Angel
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Investment grade security whose quality has deteriorated
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Split Coupon Bond
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bond with a zero or low initial coupon followed by a period with a high coupon
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Reset bond
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Bond whose coupon is periodically reset
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Increasing rate bond
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Bond whose coupon rises over time
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Extendible Security
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Bond whose maturity date may be extended into the future
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Serial Bond
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A bond issue in which specified bonds mature each year.
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Sinking Fund
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A series of periodic payments to retire a bond issue
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Balloon Payment
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The large final payment necesary to retire a debt issue
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Discount
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The sale of anything below its stated value
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Call Feature
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The right of an issuer to retire a debt issue prior to maturity
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Refunding
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The act of issuing new debt and using the proceeds to retire existing debt
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Call Penalty
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A premium paid for exercising a call feature
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