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Bond ETFs are exchange-traded funds that invest in various fixed income securities such as corporate bonds or treasury bonds. Bond ETFs allow ordinary investors to passively access benchmark bond indices in a low-cost way. Bond ETFs are available for a variety of bond categories, including treasury bonds, corporate bonds, convertible bonds, and floating rate bonds. Bond ETFs are also ladderable. Investors should understand the risks to bond ETFs, including the impact of changes in interest rates. 30-Year Treasury
September 25, 2022 30-year Treasury bonds are bonds issued by the US government with a maturity of 30 years. AAA
September 25, 2022 The highest possible rating a bond can receive is AAA, which is awarded only to those bonds that demonstrate the highest level of creditworthiness. Accrued Interest
September 25, 2022 Accrued interest is a characteristic of accrual accounting and follows revenue recognition guidelines and accounting matching principles. Agency Bond
September 25, 2022 Federal government bonds and government-sponsored corporate bonds pay slightly higher interest rates than US Treasury bonds. Amortized Bond
September 25, 2022 An amortizing bond is a type in which each payment goes towards both interest and principal. At Par
September 25, 2022 Par value is the price at which the bond was issued, also known as its face value. Baby Bond
September 25, 2022 A baby bond is a bond with a par value of less than $1,000. Bank Bill Swap Rate (BBSW)
September 25, 2022 The Bank Note Swap Rate (BBSW) is a short-term interest rate used as a benchmark for valuing Australian dollar derivatives and securities, primarily floating rate bonds. Basis Point (BPS)
September 25, 2022 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
September 25, 2022 A bearer bond is a physical certificate with coupons attached that is used to pay off interest payments. Bid Bond
September 25, 2022 A bid guarantee is a legal agreement that guarantees that contractors will fulfill their stated obligations for the project. Bill Auction
September 25, 2022 Treasury bills are issued through an electronic bill auction held by the government every week. Bond Covenant
September 25, 2022 The Bond Agreement establishes certain actions to be taken or prohibited by the bond issuer. Bond Discount
September 25, 2022 A bond discount is the amount by which the market price of a bond is below its principal amount due to be redeemed. Bond Equivalent Yield (BEY)
September 25, 2022 Fixed income securities come in many forms. Bond Fund
September 25, 2022 A bond fund invests primarily in a portfolio of fixed income securities. Bond Futures
September 25, 2022 Bond futures are contracts that give the holder of the contract the right to buy a bond on a specified date at a price specified today. Bond Ladder
September 25, 2022 A bond ladder is a portfolio of fixed income securities in which each security has a significantly different maturity date. Bond Market
September 25, 2022 The bond market broadly describes the market in which investors buy debt securities that are marketed either by governments or corporations. Bond Quote
September 25, 2022 Bond quote refers to the last price at which the bond was traded. Bond Rating
September 25, 2022 A bond rating is a letter-based credit scoring scheme used to assess the quality and creditworthiness of a bond. Bond Rating Agencies
September 25, 2022 Bond rating agencies are companies that assess the creditworthiness of both debt securities and their issuers. Bond Valuation
September 25, 2022 Bond valuation is a way of determining the theoretical fair value (or face value) of a particular bond. Bondholder
September 25, 2022 A bondholder is an investor who purchases bonds issued by an entity such as a corporation or government agency. Build America Bonds (BABs)
September 25, 2022 The Build America Bonds (BABs) were taxable municipal bonds that provided federal tax breaks or subsidies for state and local government bondholders or issuers.