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Financial Terms | |
Term bonds |
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Definition of Term bondsTerm bondsOften referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
Related Terms: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. Return-to-maturity expectationsA variant of pure expectations theory which suggests that the return that an Riding the yield curveBuying long-term bonds in anticipation of capital gains as yields fall with the Serial bondsCorporate bonds arranged so that specified principal amounts become due on specified dates. Term premiumsExcess of the yields to maturity on long-term bonds over those of short-term bonds. 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. ![]() 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. Coefficient of determinationA measure of the goodness of fit of the relationship between the dependent and coefficient of determinationa measure of dispersion that Collateral trust bondsA bond in which the issuer (often a holding company) grants investors a lien on Convertible bondsbonds that can be converted into common stock at the option of the holder. Corporate bondsDebt obligations issued by corporations. Credit TermsConditions under which credit is extended by a lender to a borrower. Cushion bondsHigh-coupon bonds that sell at only at a moderate premium because they are callable at a Deterministic modelsLiability-matching models that assume that the liability payments and the asset cash ![]() DisintermediationWithdrawal of funds from a financial institution in order to invest them directly. Dollar bondsMunicipal revenue bonds for which quotes are given in dollar prices. Not to be confused with Euro-medium term note (Euro-MTN)A non-underwritten Euronote issued directly to the market. Euro- Eurodollar bondsEurobonds denominated in U.S.dollars. Euroyen bondsEurobonds denominated in Japanese yen. Financial intermediariesInstitutions that provide the market function of matching borrowers and lenders or financial intermediaryFirm that raises money from many small investors and provides financing to businesses or other Financial IntermediaryAny institution, such as a bank, that takes deposits from savers and loans them to borrowers. Financial IntermediationThe process whereby financial intermediaries channel funds from lender/savers to borrower/spenders. Flexible TermOptional periods of time which the conditions of a contract will be carried out. 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 Intermarket sectorspread The spread between the interest rate offered in two sectors of the bond market for Intermarket spread swapsAn exchange of one bond for another based on the manager's projection of a IntermediaryAn independent third party that may act as a mediator during negotiations. Intermediate GoodA good used in producing another good. Intermediate-termTypically 1-10 years. IntermediationInvestment through a financial institution. Related: disintermediation. 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 Liquidity theory of the term structureA biased expectations theory that asserts that the implied forward Long bondsbonds with a long current maturity. The "long bond" is the 30-year U.S. government bond. Long bondsbonds with a long current maturity. The "long bond" is the 30-year U.S. government bond. Long-termIn accounting information, one year or greater. Long-term assetsValue of property, equipment and other capital assets minus the depreciation. This is an Long-term debtAn obligation having a maturity of more than one year from the date it was issued. Also Long-term debtA debt for which payments will be required for a period of more than Long Term DebtLiability due in a year or more. Long-term debt/capitalizationIndicator of financial leverage. Shows long-term debt as a proportion of the Long-term debt ratioThe ratio of long-term debt to total capitalization. Long-term debt to equity ratioA capitalization ratio comparing long-term debt to shareholders' equity. Long-term financial planFinancial plan covering two or more years of future operations. Long-term liabilitiesAmount owed for leases, bond repayment and other items due after 1 year. LONG-TERM LIABILITIESBills that are payable in more than one year, such as a mortgage or bonds. Long-term liabilitiesAmounts owing after more than one year. Longer-Term Fixed AssetsAssets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied. Medium-term noteA corporate debt instrument that is continuously offered to investors over a period of Other long term liabilitiesValue of leases, future employee benefits, deferred taxes and other obligations predetermined overhead ratean estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate Repayment TermsThe length of time given a borrower by a lender to repay a debt and the frequency of principal payments which the borrower has to meet. Short bondsbonds with short current maturities. Short-term financial planA financial plan that covers the coming fiscal year. Short-term investment servicesServices that assist firms in making short-term investments. Short-term solvency ratiosRatios used to judge the adequacy of liquid assets for meeting short-term Short-term tax exemptsShort-term securities issued by states, municipalities, local housing agencies, and TermSee term to maturity. TermThis is usually the duration of a loan. termThe period of time during which a financial contract – such as a GIC or a loan – is in force. TermThe time period during which a policy is in force, or the time it takes for a policy to reach maturity. Term DepositAn interest-earning bank deposit that cannot be withdrawn without penalty until a specific time. Term Fed FundsFed Funds sold for a period of time longer than overnight. Term insuranceProvides a death benefit only, no build-up of cash value. Term LifeA product that provides life coverage for a specified duration typically not beyond the age of 75. Term life insuranceA contract that provides a death benefit but no cash build-up or investment component. Term Life InsuranceA plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term. Term loanA bank loan, typically with a floating interest rate, for a specified amount that matures in between Term LoanA secured loan made to business concerns for a specific period (normally three to ten years). It is repaid with interest, usually with periodical payments. Term repoA repurchase agreement with a term of more than one day. Term SheetA list of the major points of the proposed financing being offered by an investor. Term structureThe relationship between the yields on fixed-interest Term Structure of Interest RatesRelationship among interest rates on bonds with different terms to maturity. Term to maturityThe time remaining on a bond's life, or the date on which the debt will cease to exist and Term to MaturityPeriod of time from the present to the redemption date of a bond. Term trustA closed-end fund that has a fixed termination or maturity date. Terminal Illness Insurance (Credit Insurance)Coverage that provides a lump-sum payment should you become terminally ill. The payment is made to your creditors to pay off your debt owing. Terminal valueThe value of a bond at maturity, typically its par value, or the value of an asset (or an entire TerminateCease all legal obligations under a contract. Termination PayAdditional pay due to an employee whose employment is Terms of saleConditions on which a firm proposes to sell its goods services for cash or credit. terms of saleCredit, discount, and payment terms offered on a sale. Terms of tradeThe weighted average of a nation's export prices relative to its import prices. Terms of TradeThe quantity of imports that can be obtained for a unit of exports, measured by the ratio of an export price index to an import price index. Treasury bondsDebt obligations of the U.S. Treasury that have maturities of 10 years or more. Yankee bondsForeign bonds denominated in US$ issued in the United States by foreign banks and Yearly Renewable Term InsuranceSometimes, simply called YRT, this is a form of term life insurance that may be renewed annually without evidence of insurability to a stated age. Capital MarketThe market in which savings are made available to those needing funds to undertake investment projects. A financial market in which longer-term (maturity greater than one year) bonds and stocks are traded. Deferred equityA common term for convertible bonds because of their equity component and the Financing InstrumentsThis is a generic term that refers to the many different forms of financing a business may use. For example - loans, shares, and bonds are all considered financing instruments. Forward rateThe future interest rate of a bond inferred from the term Local expectations theoryA form of the pure expectations theory which suggests that the returns on bonds Money MarketA financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded. Portfolio internal rate of returnThe rate of return computed by first determining the cash flows for all the Positive convexity property of option-free bonds whereby the price appreciation for a large upward change Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |