interest on bonds
51Risk-free interest rate — The risk free interest rate is the interest rate that it is assumed can be obtained by investing in financial instruments with no default risk. However, the financial instrument can carry other types of risk, e.g. market risk (the risk of changes …
52Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …
53Legal problems of Barry Bonds — The legal problems of Barry Bonds include alleged perjury regarding use of anabolic steroids by former San Francisco Giants outfielder and all time Major League Baseball home run king Barry Bonds and the related investigations surrounding these… …
54Qualified Zone Academy Bonds — (QZABs) are a U.S. debt instrument created by Section 226 of the Taxpayer Relief Act of 1997. QZABs allow certain qualified schools to borrow at nominal interest rates (as low as zero percent) for costs incurred in connection with the… …
55Covered interest arbitrage — is the investment strategy where an investor buys a financial instrument denominated in a foreign currency, and hedges his foreign exchange risk by selling a forward contract in the amount of the proceeds of the investment back into his base… …
56Balloon Interest — An increased coupon rate on the longer term maturity instruments within a serial bond issue. In a serial issue, bonds mature at different intervals, creating a string of short to long term instruments. Higher interest is earned on the long term… …
57U.S. Savings Bonds — A U.S. government savings bond that offers a fixed rate of interest over a fixed period of time. Many people find these bonds attractive because they are not subject to state or local income taxes. These bonds cannot be easily transferred and are …
58Imputed Interest — A term used to describe interest that is considered to be paid, even through no interest payment has been made. Imputed interest is calculated based on the actual payments that are to be, but have not yet been, paid. This interest is important… …
59zero coupon bonds — Bonds on which no interest is payable. The principal and the interest are paid at the maturity date. Such bonds will be issued and traded at a substantial discount to the face value. Related links coupon deep discount security/deep discount bond …
60Exempt-Interest Dividend — A distribution from a mutual fund that is not subject to income tax. Exempt interest dividends are often associated with mutual funds that invest in municipal bonds. While exempt interest dividends are not subject to federal income tax, they may… …
