bondholder
121Current yield — For bonds or notes, the coupon rate divided by the market price of the bond. The New York Times Financial Glossary * * * current yield current yield ➔ yield1 * * * A measure of the return to a bondholder, calculated as a ratio of the coupon to …
122Embedded option — An option that is part of the structure of a bond that provides either the bondholder or issuer the right to take some action against the other party, as opposed to a bare option, which trades separately from any underlying security. The New York …
123Poison put — A covenant allowing the bondholder to demand repayment in the event of a hostile merger. The New York Times Financial Glossary …
124coupon — The interest rate on a debt instrument expressed in terms of a percent on an annualized basis that the issuer guarantees to pay the holder until maturity. Chicago Board of Trade glossary coupon, coupon rate (1) The rate of interest received by… …
125current yield — The ratio of the coupon to the current market price of the debt instrument. Chicago Board of Trade glossary (1) For bonds, a measure of the simple interest annual yield for investments with coupon rates and with maturities of one year or more. To …
126CAB — capital appreciation bond ( CAB) Securities that are issued at par, but which do not remit interest to the holder until maturity. The interest accrues at the coupon rate and is compounded at a stated rate. The issuer holds the accumulated,… …
127capital appreciation bond — ( CAB) Securities that are issued at par, but which do not remit interest to the holder until maturity. The interest accrues at the coupon rate and is compounded at a stated rate. The issuer holds the accumulated, compounded interest until the… …
128convertible bond — A bond that includes a provision allowing the holder to exchange the bond for a quantity of the issuer s common stock at some fixed exchange ratio. An otherwise normal corporate bond that has a fixed maturity date that pays coupon interest and… …
