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Tax-exempt bond. A bond on which the
holder is not required to pay certain kinds of tax.
Variable-rate bond. A bond with a yield that
changes over time, using a prescribed formula.
Zero coupon bond. A bond sold at discount and
paying no interest, but instead paying the holder the face value at maturity. A
zero coupon bond stated at $1,000 but sold for $600 would yield the holder a
total of $1,000 at maturity. The extra $400 the investor makes would be treated
as interest.
Series bonds. A set of bonds to be issued across
different dates. They contrast with serial bonds, which mature across
different dates.
Dow Jones Bond Average. An index composed of the
average prices of six different bond groups. It is an indicator of the state of
the bond market.
Income bond. A bond with a set interest rate, but
the payment of which depends on the issuer's earnings. |
