redemption amountpayment guaranteesregional governmentlocal authoritySummary This chapter describes bond, which is loan by one party to another party. The issuer gives guarantee to the investor that he or she w
Maturity dateGenerally, this is when you will receive repayment of what you loaned an issuer (assuming the bond doesn't have any call or redemption features). If you want or need to sell a bond before its maturity date, you may be able to sell it to someone else, though there is no...
The YTM is the total rate of return a bond will make when it makes all interest repayments and pays back the principal amount. Also referred to as a book yield or redemption yield it is considered a more accurate and thorough means of calculating the return from a bond than the current ...
A savings bond is a low-risk, long-term investment that pays interest for up to 30 years. Unlike many financial instruments, it can be bought as a gift.
What Is Debt Redemption? Personal Finance Callable Debt Definition Personal Finance What Is a Full Call in Fixed Income? Municipal Bond Defeasance Municipal bond defeasance involves the use of "pre-refunding bonds," which are bonds issued to pay the obligatory cash outflows of an earlier bond iss...
Answer to: What is a bond? Why might a company elect to sell bonds rather than borrow from a bank? By signing up, you'll get thousands of...
A bond is a type of loan granted to the government or a company by an investor which has a fixed rate of return. They are used by governments and companies to facilitate the borrowing of money from the general public to fund various projects....
Redemption Before Maturity Some bonds contain a feature that allows the issuer to redeem, or call, the debt before maturity. The issuer can exercise the call feature on a set date -- the call date -- for a predetermined price, usually a little more than the face value. A call is mandat...
Yield to maturity is also referred to as book yield or redemption yield. YTM may fluctuate, while a bond's coupon rate or the interest paid annually on the bond's face value remains fixed. As interest rates rise, YTM increases; as interest rates fall, YTM decreases. ...
on a Series I bond can fall to is zero, which is the floor placed on the bond by the Treasury. If the inflation rate is so negative that it would take away more than the fixed rate, the composite rate will be set at zero. The formula for calculating the composite rate is given as...