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Definition
| Bonds issued by the federal government, sometimes referred to as government bonds. |
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Definition
| Bonds issued by corporations. |
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| Bonds issued by state and local governments. |
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Definition
| Bonds issued by foreign governments or by foreign corporations. |
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Definition
| The face value of a bond. |
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Definition
| The specified number of dollars of interest paid each year. |
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Definition
| The stated annual interest rate on a bond. |
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Definition
| A bond whose interest rate fluctuates with shift in the general level of interest rates. |
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Definition
| A bond that pays no annual interest but is sold at a discount below par, thus compensating investors in the form of capital appreciation. |
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| Original Issue Discount (OID) Bond |
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Definition
| Any bond originally offered at a price below its par value. |
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Definition
| A specified date on which the par value of a bond must be repaid. |
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Definition
| The number of years to maturity at the time a bond is issued. |
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Definition
| A provision in a bond contract that gives the issuer the right to redeem the bonds under specified terms prior to the normal maturity date. |
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Definition
| A provision in a bond contract that requires the issuer to retire a proportion of the bond issue each year. |
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Definition
| A bond that is exchangeable at the option of the holder for the issuing firm's common stock. |
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Definition
| A long-term option to buy a stated number of shares of common stock at a specified price. |
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Definition
| A bond with a provision that allows its investors to sell it back to the company prior to maturity at a prearranged price. |
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Definition
| A bond that pays interest only if it is earned. |
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Term
| Indexed (Purchasing Power) Bond |
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Definition
| A bond that has interest payments based on an inflation index so as to protect the holder from inflation. |
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Term
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Definition
| A bond that sells below its par value; occurs whenever the going rate of interest is above the coupon rate. |
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Term
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Definition
| A bond that sells above its par value; occurs whenever the going rate of interest is below the coupon rate. |
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Definition
| The rate of return earned on a bond if it is held to maturity. |
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Definition
| The rate of return earned on a bond when it is called before its maturity date. |
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Term
| Interest Rate (Price) Risk |
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Definition
| The risk of a decline in a bond's price due to an increase in interest rates. |
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Definition
| The risk that a decline in interest rates will lead to a decline in income from a bond portfolio. |
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Definition
| The period of time an investor plans to hold a particular investment. |
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Definition
| A bond backed by fixed assets. First mortgage bonds are senior in priority to claims of second mortgage bonds. |
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Definition
| A formal agreement between the issuer and the bondholders. |
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Definition
| A long-term bond that is not secured by a mortgage on specific property. |
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Definition
| A bond having a claim on assets only after the senior debt has been paid off in the event of liquidation. |
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Term
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Definition
| Bonds rated triple-B or higher; many banks and other institutional investors are permitted by law to hold only investment-grade bonds. |
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Term
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Definition
| A high-risk, high-yield bond. |
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