Bonds & Fixed Income Financial Terms & Definitions

26 terms in this topic

Bonds and fixed income encompass a wide range of debt instruments issued by governments, corporations, and other entities to raise capital. Investors receive regular interest payments (coupons) and the return of principal at maturity, making them a core component of many portfolios for income and diversification. This category includes terms like yield, coupon rate, maturity, credit rating, and bond pricing.

D

Duration

Duration is a fundamental concept in bond investing. It measures how sensitive a bond’s price is to changes in interest…

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M

Maturity

In the world of bonds, maturity is the predetermined date on which the issuer must repay the bond’s face value…

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T

Treasury bills

Treasury bills, often called T-bills, are short-term debt securities issued by the U.S. Department of the Treasury. They are one…

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T

Treasury bonds

Treasury bonds (often called T-bonds) are long-term debt securities issued by the U.S. Department of the Treasury to finance government…

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Y

Yield curve

The yield curve is a graphical representation that shows the relationship between interest rates (yields) and the time to maturity…

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Current yield The current yield is a measure of the annual income (interest or dividends) generated by a bond or… Duration Duration is a fundamental concept in bond investing. It measures how sensitive a bond’s price is to changes… Face / par value Face value, also known as par value, is the stated value of a bond as printed on the… High-yield (junk) bond A high-yield bond, commonly known as a junk bond, is a type of bond that offers a higher… Investment-grade bond An investment-grade bond is a bond that is considered high quality and low risk by credit rating agencies.… Maturity In the world of bonds, maturity is the predetermined date on which the issuer must repay the bond’s… Municipal bond (muni) A municipal bond (muni) is a debt security issued by a state, municipality, county, or other government entity… Treasury bills Treasury bills, often called T-bills, are short-term debt securities issued by the U.S. Department of the Treasury. They… Treasury bonds Treasury bonds (often called T-bonds) are long-term debt securities issued by the U.S. Department of the Treasury to… Treasury Inflation-Protected Securities (TIPS) TIPS stands for Treasury Inflation-Protected Securities. These are a special type of Treasury bond issued by the U.S.… Treasury notes Treasury notes, often called T-notes, are debt securities issued by the U.S. Department of the Treasury. They are… Yield curve The yield curve is a graphical representation that shows the relationship between interest rates (yields) and the time…