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According to people familiar with the matter, Bank of America Corp., Citigroup Inc., Wells Fargo & Co
(May 07, 2009)
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Canada Cuts Rate to 0.25%, May Keep It There for Year
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Navigate Your Financial Dreams.
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Investment Glossary
| Bond Definitions |
| Trade date |
the date on which the purchase order is placed
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| Settlement |
the date on which payment must be made and on which ownership is transferred
to the buyer.
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| Maturity |
the date on which the bond matures. |
| Coupon |
the interest rate that is paid on the face value of the bond, this rate is fixed for the
life of the bond. |
| Yield to maturity |
this is the average annual return to the investor that will be earned if the bond is
held until maturity. It will be lower than the coupon and the current yield if the bond is
trading at a premium, as is the case with the 2007 GOJ bond. |
| Current yield |
this is the coupon or interest rate paid on the bond, divided by the price paid for the
bond. It represents the interest rate that would be earned on the bond if it were
bought and sold for the same price. |
| Redemption |
this is the price at which the bond will be redeemed, 100 = par or face value. |
| Frequency |
this is the frequency of the interest payments, twice per year in this case. |
| Price |
this is the price at which the bonds are bought and is quoted per $100 of the bond.
For example in this case, the investor is paying $1.11 for each $1.00 of face value of
the bond ($111/$100FV) |
| Face Value |
the face value is the value of the bond on which the coupon or interest rate is
calculated and paid. It is also the value that is repaid at maturity. |
| Principal |
this is the market value of the bonds that are being purchased and the total price
that is being paid for them. |
| Days accrued |
this is the period in days, that has elapsed since the last interest payment date. |
| Accrued interest |
this is the total amount of interest that has accrued since the last interest payment
date, that the buyer will have to pay on purchase |
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