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| Glossary |
- baby bond
- Any bond with a par value less than $1,000
- benchmark
- The standard by which other assets are measured. For decades, this was the 30 year treasury bond. Today, it is the 10 year treasury note.
- coupon date
- Date interest payments earned are dispersed.
- coupon rate
- Interest rate on the par value of the bond
- discount
- Buying a bond below par value
- fallen angel
- A junk bond that once was rated investment grade by one of the threee major rating agencies.
- interest rate
- Interest rate on the par value of the bond
- maturity date
- The date on which the principal amount becomes due
- par value
- The principal to be repaid on the maturity date
- premium
- Buying a bond above par value
- return
- The gains or losses from an investment
- self-amortizing
- A bond that includes interest and principal in coupon payments.
- term
- The lifespan of a bond
- yield
- The rate of return from investing in an instrument
- yield to maturity
- The anticipated rate of return of a bond was held to maturity.
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