PAICR

Zero-coupon bond

admin — Thu, 07 Jul 2011 07:52:30 +0000

A bond that doesn’t pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Yield-to-maturity (YTM)

admin — Thu, 07 Jul 2011 07:51:54 +0000

The interest rate that equates the present value of cash flows received from a debt instrument with its value today.

Yield curve

admin — Thu, 07 Jul 2011 07:50:45 +0000

A plot of yields on bonds with differing terms to maturity but the same risk, liquidity and tax considerations; the yield curve describes the term structure of interest rates.

Unsystematic risk

admin — Thu, 07 Jul 2011 07:50:20 +0000

Company or industry specific risk that is inherent in each investment.

Underwriter

admin — Thu, 07 Jul 2011 07:49:48 +0000

Person or firm that buys a new issue of bonds or an initial public offering (usually as a syndicate with other underwriters) for reselling it to the public at a profit.

Underlying

admin — Thu, 07 Jul 2011 07:49:26 +0000

A variable on which the value of a derivative depends. Examples include interest rates, exchange rates and stock prices.

Trustee

admin — Thu, 07 Jul 2011 07:48:58 +0000

A third party retained for a fee to administer the trust that holds the underlying assets supporting a security.

Treasury bonds

admin — Thu, 07 Jul 2011 07:48:20 +0000

Long-term debt issued by the U.S. Treasury.

Treasury bills (T-bills)

admin — Thu, 07 Jul 2011 07:47:57 +0000

Short-term money market securities issued by the U.S. Treasury.

Transaction costs

admin — Thu, 07 Jul 2011 07:47:35 +0000

The time and money spent in carrying out financial transactions.