| A | B |
|---|
| coupon rate | the interest rate that a bond issuer will pay to a bondholder |
| maturity | the time which payment to a bondholder is due |
| par value | the amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity |
| yield | the annual rate of return on a bond if the bond were held to maturity |
| municipal bond | a bond issued by a state or local government or municipality to finance highways, state buildings, libraries, parks and schools |
| corporate bond | a bond that a corporation issues to raise money to expand its business |
| Securities and Exchange Commission | an independent agency of the government that regulates financial markets and investment companies |
| junk bond | a lower-rated, potentially higher-paying bond |
| capital market | market in which money is lent for periods longer than a year |
| money market | market in which money is lent for periods of less than a year |
| primary market | market for selling financial assets that can only be redeemed by the original holder |
| secondary market | market for reselling financial assets |
