An in-depth look into amortizing bonds, exploring their historical context, types, key events, mathematical models, charts, importance, applicability, examples, and related terms.
Understanding Nominal Spread: Difference between a bond's yield and a Treasury bond yield of similar maturity, not accounting for the time structure of interest rates.
Yield to Call (YTC) is a financial term that refers to the yield of a bond or note if the security is held until the call date. This measure is crucial for investors considering callable bonds.
A comprehensive guide to understanding call features or call provisions in bond indentures, including schedules, redemptions, call premiums, and call prices.
An Equipment Trust Bond is a type of secured bond issued primarily by transportation companies to finance the purchase of new equipment, with bondholders having a claim to the equipment in case of default.
A Guaranteed Bond ensures the payment obligations, both principal and interest, by an entity other than the issuing party. Commonly seen in railroad bonds, it assures security holders of income in exchange for relinquishing control.
An Income Bond's payment of interest is contingent on sufficient earnings from year to year. Such bonds are traded flat—that is, with no accrued interest—and may be used to avoid bankruptcy.
Series Bonds are a financial instrument used in fixed-income markets where bonds are issued at different times with varying maturities but governed by the same indenture. This entry explores their types, features, applications, and historical context.
A comprehensive guide on Yield to Call, which calculates the yield on a bond assuming it is redeemed by the issuer at the first call date specified in the indenture agreement. Learn about its importance, calculations, types, examples, and related terminology.
A detailed exploration of the concept of par value, its relevance in stocks and bonds, the differences between par value, market value, and book value, and real-world examples.
Our mission is to empower you with the tools and knowledge you need to make informed decisions, understand intricate financial concepts, and stay ahead in an ever-evolving market.