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Banking

At-a-Discount

Trading a debt security like a bond/ note at a price lower than its par value (face value). Face value/...

At-a-Premium

Trading a debt security like a bond/ note at a price exceeding its par value (face value). Face value/ par...

Above Par

Trading a debt security like a bond/ note at a price exceeding its par value (face value). Face value/ par...

YTC

It stands for yield to call; the return on a callable bond which is likely to be redeemed at a...

Yield To Call

The return on a callable bond which is likely to be redeemed at a call price before it reaches maturity....

Bond Par Value

The stated face value of a bond. For illustrative purposes, the par value is assumed to be $1,000, although any...

Nominal Value of a Convertible Bond

The unit size of a convertible bond. It is amount for which a bond can be redeemed at maturity. It...

Par

The face value (par value) of a bond or a similar debt security that is used to figure out the...

Nominal Yield

The rate which is earned on a bond purchased at a price equal to par value, and is paid by...

Coupon

The regular amount of interest payment that is made to bondholders during the lifetime of a bond (or a similar...