redemption rate
11fixed-rate mortgage — A mortgage where the rate of interest is fixed for a set period of time. The advantage of this type of mortgage is that the investor can budget accurately. Even if interest rates rise or fall and lenders alter their mortgage rates in line, your… …
12Variable Rate Demand Bond — A bond with floating coupon payments that are adjusted at specific intervals. The bond is payable to the bondholder upon demand following an interest rate change. Generally, the current money market rate is what is used to set the interest rate,… …
13floating-rate note — FRN A eurobond with a floating rate interest, usually based on the London Inter Bank Offered Rate. They first appeared in the 1970s and are usually issued as negotiable bearer bonds. A perpetual FRN has no redemption. A capped FRN is one with a… …
14hurdle rate — / hɜ:d(ə)l reɪt/ noun 1. the rate of growth in a portfolio required to repay the final fixed redemption price of zero dividend preference shares 2. a minimum rate of return needed by a bank to fund a loan, the rate below which a loan is not… …
15fixed rate preference shares — Shares issued wholly for new consideration with no conversion rights or rights to acquire further shares or securities, which carry dividends of a fixed amount or fixed rate per cent of the nominal value. The dividends (plus any amount paid on… …
16floating-rate note — FRN A eurobond with a floating rate interest, usually based on the London Inter Bank Offered Rate They first appeared in the 1970s and have a maturity of between 7 and 15 years. They are usually issued as negotiable bearer bonds. A perpetual FRN… …
17Preference Equity Redemption Cumulative Stock - PERCS — A convertible preferred stock with an enhanced dividend that is limited in term and participation. Preference equity redemption cumulative stock (PERCS) shares can be converted for shares of common stock in the underlying company at maturity. If… …
18Variable Redemption Bond — A bond whose redemption value is linked to a variable such as the dollar/yen exchange rate, the performance of the US Treasury bond, a stock index or the gold price …
19Treasury bill rate — The rate of interest obtainable by buying a Treasury bill at a discount and selling it at its redemption value …
20gross redemption yield — effective yield; = yield to maturity The internal rate of return of a bond bought at a specified price and held until maturity; it therefore includes all the income and all the capital payments due on the bond. The tax payable on the interest and …
