interest on bonds
71cushion bonds — An informal name for callable bonds with long maturities that have coupon rates well above current market rates. Because these bonds have such high coupon rates, they trade at prices and yields calculated to the call date rather than to the… …
72serial bonds — A serial bond issue consists of a number of bonds issued at the same time but with different maturity dates (serially due), usually with interest rates varying for the different maturity dates. To be distinguished from the series bonds (q.v.). An …
73Liberty Bonds — [Liberty Bonds] noun [pl] a special ↑issue of US government ↑bonds (= official papers that are sold with the promise to pay the money back, with interest, on a certain date). Liberty Bonds were sold to raise money for ↑ …
74Accrued interest — The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer (unless the bond is in default). The New York Times Financial Glossary * * * accrued interest accrued interest ➔ interest * * * The interest accruing… …
75imputed interest — Used in accounting to refer to interest that has effectively been paid to a bondholder, even though no money has actually been paid. Bloomberg Financial Dictionary * * * imputed interest imputed interest ➔ interest * * * imputed interest UK US… …
76Effective Interest Method — The practice of accounting for the discount at which a bond is sold as an interest expense to be amortized over the life of the bond. Using this method, additional interest expense is calculated using the prevailing market interest rate at the… …
77Accrued interest — An ISO term. The interest that has been earned but not yet been paid. The number of days, when needed (for example in case of bonds), the currency code, and the amount of accrued interest to be added or to be deducted. [3n] 3a 15d. Interest… …
78Accrued Interest Adjustment — The extra amount of interest that is paid to the owner of a convertible bond or other fixed income security. The amount paid is equal to the balance of interest that has accrued since the last payment date of the bond. At the time, the investor… …
79Residual Interest Bonds - RIBS — A type of inverse floating rate bond created by dividing the income from a municipal bond into two portions. The municipal bondholder will create two new securities: a primary direct floating rate bond and a residual inverse floating rate bond.… …
80companion bonds — A class of a collateralized mortgage obligation ( CMO) whose principal is paid off first when the underlying mortgages are prepaid due to falling interest rates. When interest rates rise, there will be lower prepayments of the principal;… …
