maturity date

Tag: maturity date

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,

Read More

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

Read More

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

Read More

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.

Read More

Treasury Bills

Treasury Bills Treasury bills are a short term government treasury security which has a maturity of less than a year. T-bills do not generally pay coupons or interest much like zero coupon bonds. Treasury Bills (t bills) Explained Because treasury bills do not pay coupons they are sold at a discount in an auction held

Read More

Maturity Date Defined

See Also: Coupon Rate Bond Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Par Value of a Bond Maturity Date Defined In finance, maturity date defined is the date on which a debt instrument is due. For example, when a bond reaches maturity, the issuer must pay the bondholder the principle

Read More

Interest Rate Risk

See Also: Sharpe Ratio Effective Rate of Interest Calculation Fixed Interest Rate vs Floating Interest Rate Interest Expense When is an interest rate not as important in selecting a loan? Interest Rate Risk Definition Interest rate risk is the risk or volatility associated with bonds or long term debt as their interest rates, coupon, yield

Read More