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Definition of Term bonds
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
A 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.
A variant of pure expectations theory which suggests that the return that an
Buying long-term bonds in anticipation of capital gains as yields fall with the
Corporate bonds arranged so that specified principal amounts become due on specified dates.
Excess of the yields to maturity on long-term bonds over those of short-term bonds.
Amounts owed by the company that have been formalized by a legal document called a bond.
bonds issued by emerging countries under a debt reduction plan.
A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.
A measure of the goodness of fit of the relationship between the dependent and
a measure of dispersion that
A bond in which the issuer (often a holding company) grants investors a lien on
bonds that can be converted into common stock at the option of the holder.
Debt obligations issued by corporations.
Conditions under which credit is extended by a lender to a borrower.
High-coupon bonds that sell at only at a moderate premium because they are callable at a
Liability-matching models that assume that the liability payments and the asset cash
Withdrawal of funds from a financial institution in order to invest them directly.
Municipal 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-
Eurobonds denominated in U.S.dollars.
Eurobonds denominated in Japanese yen.
Institutions that provide the market function of matching borrowers and lenders or
Firm that raises money from many small investors and provides financing to businesses or other
Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.
The process whereby financial intermediaries channel funds from lender/savers to borrower/spenders.
Optional periods of time which the conditions of a contract will be carried out.
General obligation bonds
Municipal securities secured by the issuer's pledge of its full faith, credit, and
bonds that are designed so as to qualify for immediate trading in any domestic capital market
spread The spread between the interest rate offered in two sectors of the bond market for
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a
An independent third party that may act as a mediator during negotiations.
A good used in producing another good.
Typically 1-10 years.
Investment through a financial institution. Related: disintermediation.
A collective term that refers to global bonds, Eurobonds, and foreign bonds.
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
Liquidity theory of the term structure
A biased expectations theory that asserts that the implied forward
bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.
bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.
In accounting information, one year or greater.
Value of property, equipment and other capital assets minus the depreciation. This is an
An obligation having a maturity of more than one year from the date it was issued. Also
A debt for which payments will be required for a period of more than
Long Term Debt
Liability due in a year or more.
Indicator of financial leverage. Shows long-term debt as a proportion of the
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term financial plan
Financial plan covering two or more years of future operations.
Amount owed for leases, bond repayment and other items due after 1 year.
Bills that are payable in more than one year, such as a mortgage or bonds.
Amounts owing after more than one year.
Longer-Term Fixed Assets
Assets 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.
A corporate debt instrument that is continuously offered to investors over a period of
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
predetermined overhead rate
an 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
The 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.
bonds with short current maturities.
Short-term financial plan
A financial plan that covers the coming fiscal year.
Short-term investment services
Services that assist firms in making short-term investments.
Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term
Short-term tax exempts
Short-term securities issued by states, municipalities, local housing agencies, and
See term to maturity.
This is usually the duration of a loan.
The period of time during which a financial contract – such as a GIC or a loan – is in force.
The time period during which a policy is in force, or the time it takes for a policy to reach maturity.
An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.
Term Fed Funds
Fed Funds sold for a period of time longer than overnight.
Provides a death benefit only, no build-up of cash value.
A product that provides life coverage for a specified duration typically not beyond the age of 75.
Term life insurance
A contract that provides a death benefit but no cash build-up or investment component.
Term Life Insurance
A 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.
A bank loan, typically with a floating interest rate, for a specified amount that matures in between
A secured loan made to business concerns for a specific period (normally three to ten years). It is repaid with interest, usually with periodical payments.
A repurchase agreement with a term of more than one day.
A list of the major points of the proposed financing being offered by an investor.
The relationship between the yields on fixed-interest
Term Structure of Interest Rates
Relationship among interest rates on bonds with different terms to maturity.
Term to maturity
The time remaining on a bond's life, or the date on which the debt will cease to exist and
Term to Maturity
Period of time from the present to the redemption date of a bond.
A 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.
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
Cease all legal obligations under a contract.
Additional pay due to an employee whose employment is
Terms of sale
Conditions on which a firm proposes to sell its goods services for cash or credit.
terms of sale
Credit, discount, and payment terms offered on a sale.
Terms of trade
The weighted average of a nation's export prices relative to its import prices.
Terms of Trade
The 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.
Debt obligations of the U.S. Treasury that have maturities of 10 years or more.
Foreign bonds denominated in US$ issued in the United States by foreign banks and
Yearly Renewable Term Insurance
Sometimes, simply called YRT, this is a form of term life insurance that may be renewed annually without evidence of insurability to a stated age.
The 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.
A common term for convertible bonds because of their equity component and the
This 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.
The future interest rate of a bond inferred from the term
Local expectations theory
A form of the pure expectations theory which suggests that the returns on bonds
A financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded.
Portfolio internal rate of return
The rate of return computed by first determining the cash flows for all the
property of option-free bonds whereby the price appreciation for a large upward change
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