Series EE Bond Definition How It Works Maturity

Series EE Bond Definition A Series EE bond is a type of savings bond issued by the U.S. Department of the Treasury. It is a low-risk investment option that allows individuals to save money and earn interest over time. Series EE bonds are considered a safe investment because they are …

Mumbai Interbank Offered Rate (MIBOR) And MIBID: The Difference

What is Mumbai Interbank Offered Rate (MIBOR)? The Mumbai Interbank Offered Rate (MIBOR) is the interest rate at which banks in Mumbai offer short-term funds to each other in the interbank market. It is a benchmark rate that indicates the average interest rate at which banks are willing to lend …

Loan Credit Default Swap Index Definition

BONDS catname A Loan Credit Default Swap (LCDS) Index is a financial instrument that allows investors to hedge against the risk of default on a loan. It is a type of credit derivative that is used to transfer the credit risk associated with a loan from one party to another. …

Leveraged Loan Index: Its Meaning And Functionality

Leveraged Loan Index The leveraged loan index provides investors with a way to measure the performance of the leveraged loan market. It is typically composed of a representative sample of leveraged loans and is designed to reflect the overall market trends. The index is calculated based on various factors, such …

Japan Credit Rating Agency (JCR) – Meaning and Responsibilities

What is Japan Credit Rating Agency (JCR)? Japan Credit Rating Agency (JCR) is a credit rating agency based in Japan. It is one of the leading credit rating agencies in the country and provides independent credit ratings for various financial instruments, including bonds. Credit rating agencies play a crucial role …

Imputed Interest: Calculate, FAQs, and More

Imputed Interest: Calculate, FAQs, and More Imputed interest refers to the interest that is considered to have been paid on a loan, even if no actual interest payment has been made. This concept is important for tax purposes and is used to determine the taxable income of the borrower. What …

I Bond: A Complete Guide on How It Works and Where to Buy

I Bond: A Complete Guide on How It Works and Where to Buy So, how do I Bonds work? I Bonds are a type of inflation-protected bond, which means that their value is adjusted for inflation. This makes them a great option for investors who want to protect their purchasing …

Gross Yield Meaning Overview Examples

Gross Yield Meaning Gross yield is a financial term that refers to the total return on an investment before any expenses or taxes are deducted. It is expressed as a percentage and is often used to evaluate the profitability of bonds, stocks, and other financial instruments. To calculate the gross …

Gilt-Edged Securities: All You Need to Know

Gilt-Edged Securities: All You Need to Know What are Gilt-Edged Securities? Gilt-edged securities are bonds that are issued by the government. They are called “gilt-edged” because they are considered to be as safe and secure as gold. These securities are typically issued with a fixed interest rate and a maturity …

General Obligation Bond Types and Differences Compared to Revenue Bond

General Obligation Bond Types General Obligation (GO) bonds are a type of municipal bond that is backed by the full faith and credit of the issuing government entity. These bonds are typically issued by state or local governments to fund public projects such as schools, roads, and infrastructure improvements. There …

Foreign Currency Convertible Bond (FCCB) Explained: How It Works

What is a Foreign Currency Convertible Bond? Definition and Features One of the key features of FCCBs is their dual nature, combining the characteristics of both debt and equity instruments. Initially, the FCCB is a debt instrument that pays interest to the bondholder at a fixed rate and has a …

Fallen Angel: Understanding, Mechanics, And Potential Dangers

Mechanics and Causes of Fallen Angel Bonds Another factor that can lead to a bond becoming a fallen angel is a broader economic downturn. During times of economic recession or financial crisis, many companies may face financial difficulties, leading to downgrades in their bond ratings. This can result in a …

Excess Cash Flow: Definition Calculation Formulas Example

What is Excess Cash Flow? Excess cash flow refers to the amount of cash generated by a business that exceeds its operating and financing needs. It is the surplus cash that remains after all the necessary expenses and debt obligations have been met. This excess cash flow can be used …

Discount Yield Formula Meaning Examples

Discount Yield Formula The discount yield formula is used to calculate the yield on a discounted bond or other fixed-income security. It is a measure of the annualized rate of return that an investor can expect to earn by purchasing the bond at a discount to its face value and …

Bullet Bond Definition Example Vs Amortizing Bond

Bullet Bond Definition Example Vs Amortizing Bond A bullet bond is a type of bond that does not have any principal repayments until the maturity date. This means that the investor receives regular interest payments throughout the life of the bond, but the principal amount is only repaid at the …