Tag: bond

Maturity Date definition explanation

What is Maturity Date?
The date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due and is repaid to the investor and interest payments stop. It is also the termination or due date on which an installment loan must be paid in full. Read more for examples and further explanation including related video clips and also comments
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Lehman Brothers Government/Corporate Bond Index definition explanation

What is Lehman Brothers Government/Corporate Bond Index?
An unmanaged market-weighted index, comprised of government and investment grade corporate debt instruments with maturities of one year or greater. The Lehman Brothers Government/Corporate Bond Index is a total return benchmark index for many bond funds. Read more for examples and further explanation including related video clips and also comments
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Intermediate/Medium-Term Debt definition explanation

What is Intermediate/Medium-Term Debt?
A type of fixed income security with a maturity, or date of principle repayment, that is set to occur in the next 3-10 years. Bonds and other fixed income products tend to be classified by maturity date, as it is the most important variable in the yield calculations. In a standard (or positive) yield curve environment, intermediate-term bonds pay a higher yield for a given credit quality than short-term bonds, but a lower yield compared to long-term (10+ years) bonds. Read more for examples and further explanation including related video clips and also comments
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Debt Security definition explanation

What is Debt Security?
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.

The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.

Also known as “”fixed-income securities.”” Read more for examples and further explanation including related video clips and also comments
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