inflation-indexed security
41Day count convention — In finance, a day count convention determines how interest accrues over time for a variety of investments, including bonds, notes, loans, mortgages, medium term notes, swaps, and forward rate agreements (FRAs). This determines the amount… …
42Inverse floating rate note — An inverse floating rate note, or simply an inverse floater, is a type of bond or other type of debt instrument used in finance whose coupon rate has an inverse relationship to short term interest rates (or its reference rate). With an inverse… …
43Certificate of Annuity — (COA) is a financial instrument/security issued by government agencies which guarantee the initial interest rate for funds on deposit for the entire length of the maturity of the security. Typical maturity/tenor for these deposit instruments are… …
44Option-adjusted spread — (OAS) is the flat spread which has to be added to the treasury yield curve in a pricing model (that accounts for embedded options) to discount a security payment to match its market price. OAS is hence model dependent. This concept can be applied …
45Bond duration — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …
46Par value — Par value, in finance and accounting, means stated value or face value. From this comes the expressions at par (at the par value), over par (over par value) and under par (under par value). The term par value has several meanings depending on… …
47Revenue bond — A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue generating entity associated with the purpose of the bonds, rather than from a tax. Unlike… …
48Maturity (finance) — In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid. The term fixed maturity is applicable to any form of… …
49Bond convexity — In finance, convexity is a measure of the sensitivity of the duration of a bond to changes in interest rates, the second derivative of the price of the bond with respect to interest rates (duration is the first derivative). In general, the higher …
50Current yield — The current yield, interest yield, income yield, flat yield or running yield is a financial term used in reference to bonds and other fixed interest securities such as gilts. It is the ratio of the annual interest payment and the bond s current… …
