A | B |
Bid Price | price others are willing to pay at a particular time |
Bond | lending investment in which individulas loan money to the government or corporations for a set interest rate for a set time |
Bond Rating | ranking of bond issuers according to risk of default and financial responsibility |
Bond Table | Gives issuer, coupon rate, maturity date, bid price, and yield |
Callable Bond | Bonds that can be repaid before the maturity date by the borrower |
Convertible Bond | Bonds that can be changed into stock |
Corporate Bond | Bonds issued by companies |
Coupon Rate | the interest rate |
Default Risk | Possibility of loss due to issuers failure to pay |
Discount Bond | Bonds available for purchase below par value |
Face Value | original bonds amount |
Interest rate risk | Possibility of loss due to a rise in interest rates over time |
Issuer | The corporation or governing body borrowing money |
Liquidity risk | Possibility of loss due to inability to access the money you invested |
Marketable Bonds | Bonds that can be bought and sold in the open market |
Maturity Date | date a bond is to be repaid |
Municipal Bonds | Bonds issued by state city or county government |
Non-Marketable Bonds | Bonds that cannot be sold in the open market |
Par Value | AKA face value |
Premium Bonds | Bonds available for above the par value |
Puttable Bonds | Bonds that can be repaid earlier than the maturity date at the lender's request |
Repayment Risk | Possibility of loss due to being paid back at a different time or terms |
Repayment Terms | The way a bond is repaid |
Savings Bond | Non-marketable bonds issued by the government |
Secured Bonds | Bonds that are guaranteed by collateral |
Series EE Savings Bonds | Non-marketable bonds that DO NOT make interest payments along the way |
Series HH Savings Bonds | Non-marketable bonds that DO make interest payments along the way |
Straight Bonds | Bonds that are repaid on the maturity date with no other option |
T-Bills | Treasury bond for 1 year or less |
T-bonds | Treasury bond for 10 years or more |
T-notes | Treasury bond for 1 -10 years |
Treasury Bonds | Marketable bonds issued by the government |
Yield | what a bond brings an investor at a particular bid price over time |
a Governing body | Savings bonds, treasury bonds, and municipal bonds are all loans to this |
Reliable | Government bonds are this because they can always back what they owe |
Inverse | The relationship between bonds and the stock market |
Benefit of bonds | performs well in poor economy, reliability, meets long-term goals |