bearer bond
debt security issued by a business entity such as a corporation, or a government
bond fund
fund that specifically invests in bonds and other forms of debt
bond market
marketplace where participants trade new debt or buy and sell debt securities
bond rating
credit rating of a bond based on the likelihood of default and other instrument-specific risks
bond rating agency
independent organization that analyzes bonds and the underlying assets in order to offer an investment rating
callable bond
debt security in which the issuer has included the option to repurchase the bond before its maturity date
convertible bond
debt security that can be changed into a number of shares of the bond issuer's stock
corporate bond
debt security issued by a company in order to raise capital through debt
coupon payment
periodic payment from a bond that is outside of the payment at maturity
debt to equity ratio
ratio used to measure how a company has financed its business through debt, shareholders’ equity, or a combination of both
discount bond
debt security that sells under the face value
Eurobond
debt security denominated in a currency that is not the home currency of the issuer
face value
principal amount that is returned to the lender at the end of maturity
financial assets
tangible liquid assets such as cash, stocks, and bonds
government bond
debt security issued by a government, whether local, state, or federal
high-yield bond
bond with a low credit rating for which investors can expect a high return on investment
mortgage bond
debt security that uses a mortgage as the underlying asset
premium bond
debt security that sells over its face value
yield to maturity (YTM)
return on a bond from the date of purchase through the date of maturity, expressed as an annual percentage
zero-coupon bond
debt security that is issued at a deep discount to its face value; does not pay interest payments, but at maturity pays the full face value