![]() |
|
Financial Terms | |
Bond-equivalent basis |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: credit, tax advisor, stock trading, accounting, financial advisor, money, finance, inventory, |
Definition of Bond-equivalent basisBond-equivalent basisThe method used for computing the bond-equivalent yield.
Related Terms:accrual-basis accountingWell, frankly, accrual is not a good descriptive Accrual bondA bond on which interest accrues, but is not paid to the investor during the time of accrual. Agency basisA means of compensating the broker of a program trade solely on the basis of commission Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized BasisRegarding a futures contract, the difference between the cash price and the futures price observed in the Basis pointIn the bond market, the smallest measure used for quoting yields is a basis point. Each percentage Basis PointOne one-hundredth of one percent ![]() Basis pointOne hundredth of one percentage point, or 0.0001. Basis PointOne one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points. Basis pricePrice expressed in terms of yield to maturity or annual rate of return. Basis riskThe uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for Bearer bondbonds that are not registered on the books of the issuer. Such bonds are held in physical form by Bondbonds are debt and are issued for a period of more than one year. The U.S. government, local BONDA long-term, interest-bearing promissory note that companies may use to borrow money for periods of time such as five, ten, or twenty years. BondA long-term debt instrument in which the issuer (borrower) is bondSecurity that obligates the issuer to make specified payments ![]() BondA financial asset taking the form of a promise by a borrower to repay a specified amount (the bond's face value) on a maturity date and to make fixed periodic interest payments. BondUsually a fixed interest security under which the issuer contracts to pay the lender a fixed principal amount at a stated date in the future, and a series of interest payments, either semi-annually or annually. Interest payments may vary through the life of bond. bondA debt security issued by a government or company. You receive regular interest payments at specified rates while you hold the bond and you receive the face value when it matures. Short-term bonds mature in less than five years; medium-term bonds mature in six to ten years; and long-term bonds mature in eleven years or greater. BondFixed interest security issued by a corporation or government, having a specific maturity date. Bond agreementA contract for privately placed debt. Bond covenantA contractual provision in a bond indenture. A positive covenant requires certain actions, and Bond equivalent yieldbond yield calculated on an annual percentage rate method. Differs from annual Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Bond Equivalent Yieldbond yield calculated on an annual percentage rate method Bond indentureThe contract that sets forth the promises of a corporate bond issuer and the rights of Bond indexingDesigning a portfolio so that its performance will match the performance of some bond index. ![]() Bond pointsA conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible BONDPARA system that monitors and evaluates the performance of a fixed-income portfolio , as well as the Bonds payableAmounts owed by the company that have been formalized by a legal document called a bond. Brady bondsbonds issued by emerging countries under a debt reduction plan. Bull-bear bondbond whose principal repayment is linked to the price of another security. The bonds are Bulldog bondForeign bond issue made in London. Callable bondA bond that allows the issuer to buy back the bond at a callable bondbond that may be repurchased by the issuer before maturity at specified call price. Canada Savings BondsA bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value. CASH AND CASH EQUIVALENTSThe balance in a company’s checking account(s) plus short-term or temporary investments (sometimes called “marketable securities”), which are highly liquid. Cash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a Cash equivalentA short-term security that is sufficiently liquid that it may be considered the financial Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality Cash EquivalentsHighly liquid, fixed-income investments with original maturities of three months or less. Cash EquivalentsInstruments or investments of such high liquidity and safety that they are virtually equal to cash. Certainty equivalentAn amount that would be accepted in lieu of a chance at a possible higher, but Collateral trust bondsA bond in which the issuer (often a holding company) grants investors a lien on Common stock equivalentA convertible security that is traded like an equity issue because the optioned Completion bondingInsurance that a construction contract will be successfully completed. Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that convertible bondbond that the holder may exchange for a specified number of shares. Convertible bondsbonds that can be converted into common stock at the option of the holder. Convertible eurobondA eurobond that can be converted into another asset, often through exercise of Corporate bondsDebt obligations issued by corporations. Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Cost basisAn asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc. Coupon BondAny bond with a coupon. Contrast with discount bond. Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Cushion bondsHigh-coupon bonds that sell at only at a moderate premium because they are callable at a Debenture bondAn unsecured bond whose holder has the claim of a general creditor on all assets of the Deep-discount bondA bond issued with a very low coupon or no coupon and selling at a price far below par Discount bondDebt sold for less than its principal value. If a discount bond pays no interest, it is called a Discount BondA bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price. Discounted basisSelling something on a discounted basis is selling below what its value will be at maturity, Dollar bondsMunicipal revenue bonds for which quotes are given in dollar prices. Not to be confused with Dollar price of a bondPercentage of face value at which a bond is quoted. Equivalent annual annuityThe equivalent amount per year for some number of years that has a present Equivalent annual benefitThe equivalent annual annuity for the net present value of an investment project. Equivalent annual cash flowAnnuity with the same net present value as the company's proposed investment. Equivalent annual costThe equivalent cost per year of owning an asset over its entire life. equivalent annual costThe cost per period with the same present value as the cost of buying and operating a machine. Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Equivalent loanGiven the after-tax stream associated with a lease, the maximum amount of conventional Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax equivalent units of production (EUP)an approximation of the number of whole units of output that could have been EurobondA bond that is (1) underwritten by an international syndicate, (2) offered at issuance EurobondA debt security issued in a market other than the home market of eurobondbond that is marketed internationally. Eurodollar bondsEurobonds denominated in U.S.dollars. Euroyen bondsEurobonds denominated in Japanese yen. Extendable bondbond whose maturity can be extended at the option of the lender or issuer. Fixed-income equivalentAlso called a busted convertible, a convertible security that is trading like a straight Fixed price basisAn offering of securities at a fixed price. Flow-through basisAn account for the investment credit to show all income statement benefits of the credit Flower bondGovernment bonds that are acceptable at par in payment of federal estate taxes when owned by Foreign bondA bond issued on the domestic capital market of anther company. Foreign bond marketThat portion of the domestic bond market that represents issues floated by foreign Formula basisA method of selling a new issue of common stock in which the SEC declares the registration Full coupon bondA bond with a coupon equal to the going market rate, thereby, the bond is selling at par. General obligation bondsMunicipal securities secured by the issuer's pledge of its full faith, credit, and Global bondsbonds that are designed so as to qualify for immediate trading in any domestic capital market Government bondSee: Government securities. High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. High-yield bondSee:junk bond. Income bondA bond on which the payment of interest is contingent on sufficient earnings. These bonds are Indexed bondbond whose payments are linked to an index, e.g. the consumer price index. Industrial revenue bond (IRB)bond issued by local government agencies on behalf of corporations. Insured bondA municipal bond backed both by the credit of the municipal issuer and by commercial International bondsA collective term that refers to global bonds, Eurobonds, and foreign bonds. Investment grade bondsA bond that is assigned a rating in the top four categories by commercial credit Junk bondA bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or high Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |