premium bond
81Equity Premium Puzzle - EPP — An phenomenon that describes the anomalously higher historical real returns of stocks over government bonds. The equity premium, which is defined as equity returns less bond returns, has been about 6% on average for the past century. It is… …
82default premium — A differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond ( corporate bonds) that entails some risk of default. Often the premium is measured as the yield over and above a government bond… …
83high-premium convertible debenture — A bond with a long term, high premium, common stock conversion feature. It also offers a competitive interest rate. This type of investment vehicle is aimed at bond investors who want to be able to convert into stock to hedge against inflation.… …
84amortizable premium — The premium paid for a bond debenture, note, certificate, or other evidence of indebtedness which bears interest and is issued by a corporation, government, or political subdivision, including both registered and unregistered bonds. IRC § 171(d) …
85Insurance bond — An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Due to tax laws they are a common form of investment in the UK and some offshore centres.Traditionally insurance bonds were with… …
86Callable Bond — A bond that can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called. Also known as a redeemable bond . The main cause of a call is a decline in interest rates. If interest rates… …
87insurance bond — UK US noun [C] (also investment bond) FINANCE ► a bond where the investment is paid as a single payment into a life insurance agreement from which the person who owns the bond receives a regular income: »Single premium insurance bonds allow… …
88American Callable Bond — A bond that can be redeemed by the issuer at any time prior to its maturity. Usually a premium is paid to the bondholder when the bond is called. The main cause of a call is a decline in interest rates since the first date of issue. The issuer… …
89Insured Bond — A bond with interest and principle payments insured by a third party. Insured bonds are usually found as a feature of municipal bonds; they are purchased, underwritten and repackaged by a financial guarantee company who then sells the issue to… …
90pickup bond — A bond with a relatively high coupon that is close to the date at which it is callable, meaning that a fall in interest rates will most likely cause early redemption of the bond at a premium. Bloomberg Financial Dictionary …
