bond rate
91Premium Bond — A Premium Bond is a lottery bond issued by the United Kingdom government s National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price.Premium Bonds were introduced by the government… …
92Federal funds rate — In the United States, the federal funds rate is the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis.… …
93I Bond — UK US noun [C] (also Series I Bond, I Savings Bond) ► FINANCE a type of savings bond from the US Treasury that pays a fixed rate of interest, plus interest at a rate that changes every six months based on the rate of inflation: »I Bonds grow in… …
94Floating interest rate — A floating interest rate, also known as a variable rate or adjustable rate, refers to any type debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument. Such debt… …
95Spot Rate Treasury Curve — A yield curve constructed using Treasury spot rates rather than yields. The spot rate Treasury curve can be used as a benchmark for pricing bonds. This type of rate curve can be built from on the run treasuries, off the run treasuries or a… …
96Variable Rate Demand Bond — A bond with floating coupon payments that are adjusted at specific intervals. The bond is payable to the bondholder upon demand following an interest rate change. Generally, the current money market rate is what is used to set the interest rate,… …
97floating rate note — ( FRN) A bond which pays a floating rate of interest. The rate of interest payable on the bond will be reset at regular intervals, for example, each three months or six months. Dresdner Kleinwort Wasserstein financial glossary * * * floating rate …
98Short rate model — In the context of interest rate derivatives, a short rate model is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate.The short rateThe short rate, usually written r t… …
99Yield elasticity of bond value — is the percentage change in bond value divided by a one per percentage change in the yield to maturity of the bond. This is equivalent to saying the derivative of value with respect to yield times the (interest rate/value). This is equal to the… …
100Interest Rate Risk — The risk that an investment s value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relationship. Such changes usually affect… …
