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.

Yield to maturity (YTM) Yield to Maturity (YTM) is the total return anticipated on a bond if it is held until it… Zero-coupon bond A zero-coupon bond is a type of bond that does not pay periodic interest payments (coupons) to its…