Tag: bond

What is a Bond?

What is a bond? It is a corporate or government debt instrument. It represents a loan to the company from the investing public. In this case, the company is the borrower and the investor is the lender. Companies issue bonds to raise money for business investments. What is a Bond? A bond has a par value,

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Zero Coupon Bonds

See Also: What is a Bond Non-Investment Grade Bonds Covenant Definition of a Bond Contract Yield to Maturity of a Bond Financial Instruments Zero Coupon Bonds Zero coupon bonds are a debt security that does not have periodic interest payments. The bond, issued at a deep discount from par value, compensates for the lack of

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Yield to Maturity of a Bond

See Also: What is a Bond Non-Investment Grade Bonds Covenant Definition of a Bond Contract Zero Coupon Bonds Financial Instruments Yield to Maturity Concept The yield to maturity (YTM) of a bond represents the annual rate of return for the full life of the bond. The YTM assumes the investor will hold the bond to

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Yield Curves

See Also: What is a Bond? Yield to Maturity Coupon Rate Bond Par Value of a Bond Zero Coupon Bonds Yield Curves Definition In the field of finance, yield curves represent the relationship between the yields on bonds of similar credit quality that have differing maturity dates. Many commonly use the yield curve plotting U.S.

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Warrants

See Also: Common Stock Definition Purchase Option Call Option Put Option Synthetic Stock Warrants Definition The warrants definition is the right to purchase shares or bonds at a fixed price before there is an issuance in the public marketplace. In this sense, a warrant is like a call option. But there are several key differences.

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Sukuk

Sukuk Definition A Sukuk is the islamic world’s version of a bond. It is also referred to as an islamic bond. Because Islamic people do not believe in charging or paying interest, they have been forced to maneuver their way around interest by renting certain assets or by taking ownership in a project. Sukuk Meaning

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Shanghai Stock Exchange (SSE)

See Also: Tokyo Stock Exchange (TSE) National Stock Exchange of India (NSE) Bombay Stock Exchange (BSE) Frankfurt Stock Exchange (FSE) Hong Kong Stock Exchange (HKEX) Shanghai Stock Exchange (SSE) The Shanghai Stock Exchange (SSE) is the third largest exchange in terms of market capitalization. The exchange is currently not open to all foreign investors. Shanghai

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Secured Claim

See Also: Pledged Collateral Collateralized Debt Obligations Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) Convertible Debt Instrument Asset Based Financing Secured Claim Definition The secured claim definition is debt backed by collateral. It can refer to loans, mortgages, bonds, and other financial debt instruments. As stipulated in the debt contract, the debtor backs the

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Special Tax Bond

Special Tax Bond Definition A Special Tax Bond is a bond, usually issued by a government entity. It uses a particular tax to pay off creditors. Special Tax Bond Meaning Local governments like cities or states normally use special tax bonds. A government entity will use a special tax bond for city or state management.

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Private Placement

See Also: Convertible Debt Instrument Common Stock Definition Preferred Stocks Hedging Risk Treasury Stock Private Placement Definition The private placement definition is the process of raising capital directly from institutional investors. A company that does not have access to or does not wish to make use of public capital markets can issue stocks, bonds, or

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Par Value of Bonds

Par Value of Bonds Definition The par value of bonds definition refers to the principal – the amount of money the bondholder receives when the bond matures. Par value is also called face value or nominal value. It is the amount stipulated in the bond contract. However, par value does not include interest payments. Bond

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National Stock Exchange of India (NSE)

See Also: Common Stock Definition Over the Counter Bulletin Board (OTCBB) Currency Exchange Rates Non-Investment Grade Bonds (Unsecured Debentures) Australian Securities Exchange (ASX) National Stock Exchange of India (NSE) Definition The National Stock Exchange of India or NSE for short is the largest stock exchange market in India. It is the third largest in the

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