B | C | D - E | F - I | L - M | N - P | Q - S | T - Z
Tax Base - The
total property and resources subject to taxation.
Tax Swap - The
simultaneous purchase and sale of non-identical bonds to (1)
take capital losses on bonds sold, (2) while maintaining
tax-free interest income levels from the bonds purchased. A
"swap" is normally instituted by a client who needs to offset
Yield - The yield an investor would have to
earn from a taxable security to equal the value of a tax-exempt
security of the same credit quality.
Term Bond - A
bond of an issue that has a single stated maturity date. These
bonds are usually quoted in price rather than yield. They
comprise all or a large part of a particular issue that come
due in a single maturity. The issuer usually agrees to make
periodic payments into a sinking fund for mandatory redemption
of term bonds before maturity or for payment at maturity.
Unrated Bond - A
bond without a rating. Such bonds are normally presumed to be
speculative when sold in the new issue market; seasoned
good-quality secondary-market bonds, however, will frequently
lack a current rating from one or both services.
Yield to Call - The rate of
return to the investor earned from payments of principal and
interest, with interest compounded semiannually at the stated
yield presuming that the security is redeemed prior to its
Yield to Maturity - Annual
percentage return on an investment calculated to maturity. The
normal basis for quotes on municipal bonds.
Zero Coupon Bond - A bond
that does not pay current interest. "Zeros" are normally
purchased at discounted prices, with investment returns payable
at maturity or upon call.