Fixed Income - Categories - Financial Literacy for Everyone - Bambarbia

AAA

Bonds Fixed Income Financial Terms Dictionary

The highest possible rating a bond can receive is AAA, which is awarded only to those bonds that demonstrate the highest level of creditworthiness.

Accretion of Discount

Fixed Income Fixed Income Trading Fixed Income Trading Strategy & Education Financial Terms Dictionary

Increasing discount refers to an increase in the value of a discount security as it approaches its maturity date.

Accrued Interest

Bonds Fixed Income Financial Terms Dictionary

Accrued interest is a characteristic of accrual accounting and follows revenue recognition guidelines and accounting matching principles.

Agency Bond

Bonds Fixed Income Fixed Income Trading Strategy & Education Financial Terms Dictionary

Federal government bonds and government-sponsored corporate bonds pay slightly higher interest rates than US Treasury bonds.

Amortized Bond

Bonds Fixed Income Financial Terms Dictionary

An amortizing bond is a type in which each payment goes towards both interest and principal.

At Par

Bonds Fixed Income Stocks Financial Terms Dictionary

Par value is the price at which the bond was issued, also known as its face value.

Average Life

Fixed Income Fixed Income Trading Fixed Income Trading Strategy & Education Financial Terms Dictionary

Average life is the average length of time it takes to pay off the outstanding principal on a debt instrument, such as a treasury bill, bond, loan, or mortgage-backed security.

Baby Bond

Bonds Fixed Income Fixed Income Trading Strategy & Education Financial Terms Dictionary

A baby bond is a bond with a par value of less than $1,000.

Basis Point (BPS)

Bonds Fixed Income Financial Terms Dictionary

A basis point is a standard measure of interest rates and other percentages in finance. – One basis point is equal to 1/100th of 1%, or 0.01% (and 0.0001 in decimal).

Bearer Bond

Bonds Fixed Income Fixed Income Trading Strategy & Education Financial Terms Dictionary

A bearer bond is a physical certificate with coupons attached that is used to pay off interest payments.

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