Term bonds
Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is payable at maturity. ...
term bonds
Bonds with one maturity date (as opposed to serial bond).
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Term Bonds: A bond issue in which all bonds mature at he same time.
Term Loan: Loan extended by a bank for more than the normal 90-day period. A term loan might run 5 years or more.
Term bonds:
Often referred to as bullet-bonds, whose principal is payable at maturity.
Français: Obligations sans amortissement
Español: Term bond ...
Term bonds
Bonds whose principal is payable at maturity. Often referred to as bullet-maturity bonds or simply bullet bonds.
Term certificate ...
TERM BONDS - Bonds whose entire principal matures on one date.
TERMINATION BENEFITS - Benefits given to employees when they leave state service either voluntarily (i.e. early retirement) or involuntarily (i.e. reduction in force).
Term bonds - The principal of the bond is payable at maturity.
Term loan - Usually refers to an intermediate -to long-term (typically, two- to ten-year) business loans with provisions for systematic repayments (amortisation during the life ...
Long-Term Bonds
Bonds that mature in more than ten years.
An option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.
Short-term bonds, issued for five years or less from the issuance date, are often called notes. Interest-bearing bonds pay interest periodically.
See also: Bond Categtories.
Buying long-term bonds in anticipation of capital gains as yields fall with the
declining maturity of the bonds.
Spot rate curve
The graphical depiction of the relationship between the spot rates and maturity.
Intermediate-term bonds mature in two to ten years from the date of issue. Typically, the interest on these bonds is greater than that on short-term bonds of similar quality but less than that on comparable long-term bonds.
Related: Term bonds. Serial covariance The covariance between a variable and the lagged value of the variable; the same as autocorrelation.
For example, with a positively sloped term structure (short rates lower than long rates), one might borrow at low short term rates and finance the purchase of long-term bonds.
Income risk is generally greatest for money market instruments and short-term bonds, and least for long-term bonds.
Intermediate term bonds Debt securities with maturities of one to ten years. The benchmark for this asset class is the Lehman Brothers Intermediate Bond Index. International bonds Debt securities of any country.
Return-to-maturity expectations A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a ...
The bullion bank immediately sells the gold and invests in securities with a higher rate of return, such as government long-term bonds. The carry return is the return on the bonds minus the gold lease rate.
Interest rate risk should be modest for shorter-term bonds, moderate for intermediate-term bonds, and high for longer-term bonds.
Most corporate bonds are term bonds. term CD A CD with a maturity date that is at minimum one year after the date the CD is issued. term certain method A distribution calculation method based on life expectancy and used in relation...
To implement such a policy, central banks sell short-term bonds, pushing their prices down and interest rates up. Interest rates, short term and long term, tend to rise together.
The Liquidity Preference Theory asserts that long-term interest rates not only reflect investors' assumptions about future interest rates but also include a premium for holding long-term bonds (investors prefer short term bonds to long term bonds), ...
In a junior refunding the holders of bonds that are maturing in less than five years exchange those bonds for longer-term bonds.
When you use a barbell strategy you invest equivalent amounts in short-term and long-term bonds, creating the shape that gives the strategy its name.
A normal curve is when interest yields are higher for longer-term bonds and lower for shorter-term bonds. A flat curve is when yields are about the same for longer term and shorter-term bonds.
Where yields on short-term bonds are above those on long-term bonds. This is a reversal of the normal yield curve where long-term rates are higher to reflect the risk of holding them for longer.
In the past, such situations have often presaged economic recessions yet, nowadays, many financial experts claim that they may simply reflect the supply-and-demand picture: if longer-term bonds are in high demand, ...
Typically, the yields on long-term bonds are higher than short-term bonds because investors want a better return for tying up their money for a longer time. During normal growth, the yield on a 30-year bond will be 3 points higher than a 3-month bill.
The United States Federal Reserve is currently experiencing record demand for the short-term bonds it's selling to focus on longer-maturity debt, a sign that the economic strength evidenced this October may well be illusory.
They usually include payables such as wages, accounts, taxes, and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.
Shorter term bonds are also issued, but these may be called notes. While structures vary, corporate bonds are typically issued at a price close to their par value and pay a fixed semi-annual coupon.
National Debt - Maastricht definition [r]: general government gross debt according to the convergence criteria set out in the Maastricht Treaty, comprising currency, bills and short- term bonds, ...
If you want a steady stream of income, it's best to buy short-term bonds (the logic being that it's easier to predict interest rates in the short term).
Similarly, there are periods when intermediate-term bonds-U.S. Treasury notes are a good example-provide a stronger return than short- or long-term bonds from the same issuer.
Strip Bonds: Long term bonds that have had their coupons "stripped" - regular interest payments are sold separate from the bond's par value. Both the coupon (the strip) and the par amount (the residual) are sold at a discount from par.
Mandatory Sinking Fund - A requirement to redeem a fixed portion of term bonds, which may comprise the entire issue, in accordance with a fixed schedule.
A structured investment vehicle (SIV) is a special purpose vehicle that buys long term bonds and other fixed income securities, funding this with by issuing short or medium term debt such as commercial paper.
INTERMEDIATE-TERM BOND - Intermediate-term bonds mature in two to ten years from the date of issue. Typ...
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In a standard (or positive) yield curve environment, intermediate-term bonds pay a higher yield for a given credit quality than short-term bonds, but a lower yield compared to long-term (10+ years) bonds.
BARBELL A bond management strategy where the portfolio is invested primarily in short-term and long-term bonds, but in few bonds with intermediate maturities.
UITs have a termination date according to the investment units they offer. Long-term bonds may be held for as long as 20 to 30 years. When the termination date arrives, unit holders may choose to receive the proceeds or reinvest them in another trust.
In most periods, the rate on long-term bonds is higher and the yield curve is positive because investors demand more for tying up their money for a longer period.
Average Life
The average length of time an issue of serial bonds and/or term bonds with mandatory sinking funds and/or estimated prepayments is expected to be outstanding. It also can be the average maturity of a bond portfolio.
Permanent Financing - Consists of stock or long-term bonds. While most bonds have maturities they are still considered a type of permanent financing.
A rating of one through four assigned by Moody's Investment Service o municipal short-term bonds.
Moody's investors service
A security and bond rating agency publishing six bound manuals and a common stock handbook annually.
Income risk
The possibility that a portfolio's dividends will decline as a result of falling interest rates. Income risk is generally greatest for money market instruments and short-term bonds, and least for long-term bonds.
A variant of pure expectations theory which suggests that the return that an
investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding ...
Corporate bonds arranged so that specified principal amounts become due on specified dates. Related: term bonds.
Serial covariance
The covariance between a variable and the lagged value of the variable; the same as auto covariance.
Essentially, the serial bond with balloon has bonds that mature at different intervals throughout the issue's life, and then a large percentage of the bonds (the term bonds) mature in the last year of the issue's term.
STRUCTURE " When a municipal bond issue will mature. See: Term Bonds, Serial Bonds, Balloon.
This includes bonds, although in differentiating between short-, medium-, and long-term bonds, short-term often is stretched to mean two years or less. See also short-term bond fund; short-term debt; short-term gain or loss.
Cash and cash equivalents
Assets that are readily convertible to cash, such as accounts receivable, short-term commercial paper and short-term bonds and notes issued by municipalities and corporations.
Long bond. A bond maturing in 10 or more years. Because an investor's money is tied up for a long time, the bonds are riskier than shorter term bonds of the same quality. Thus, they usually pay a higher yield.
A Treasury bond (or T-bond) has a maturity length of over 10 years, with 15 and 30 years common maturities. T-bonds, together with other long-term bonds issued by state and local governments and businesses, are traded in capital markets.
These are highly liquid funds that invest most of their assets in cash or near-cash instruments traded on the money market, such as bank deposits, certificates of deposit, very short-term bonds or floating rate notes.
The paper evidence of a legal promise by the Issuer to pay the Investor on the declared terms. Bond are usually Negotiable. Bonds are customarily longer-term, say 5-25 years. Short-term bonds are usually referred to as Notes.
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Capitalization: The long-term financing of a corporation, including the shareholder's equity section of the balance sheet plus long-term bonds outstanding.
In a serial issue, bonds mature at different intervals, creating a string of short- to long-term instruments. Higher interest is earned on the long-term bonds, providing incentive to investors for holding the instrument for an increased period.
A graph that plots the yields of similar quality bonds on the y-axis and the time to maturity on the x- axis. Generally, the longer the time to maturity, the higher the interest rate. When the yield on long-term bonds is less than that on shorter ...
Usually, the curve slopes upwards but occasionally it slopes down or is flat. A flat yield curve means that yields on long-term bonds are not much higher than those on short-term notes. See With a Flat Yield Curve, Which Mortgages Are Best?
The design of a portfolio to achieve a target level of return in the face of changing reinvestment rates and price levels. This is done by combining short- and long-term bonds in the same portfolio to produce a predictable rate of return regardless ...
 See also: Banks, Expense, Saving, Indenture, Bills
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