are often expressed as "percentage of PSA" (Prepayment Speed Assumptions). Floating-rate cmmo tranche which pays an adjustable rate of interest tied to a representative interest rate index such as the London Interbank Offered Rate (libor the Constant Maturity Treasury (CMT or the Cost of Funds Index (cofi). Similarly, if interest rates fall, the value of the older, higher-paying bond will rise in comparison with new issues. Zero-coupon bond A bond which does not make periodic interest payments; instead the investor receives one payment, which includes principal and interest, at redemption (call or maturity). Another example is when a school district includes two or more municipalities within its bounds. Bond duration measurements help quantify and measure exposure to interest rate risks.
Continuing disclosure Under amendments to Rule 15c2-12, the obligation on the issuers part to provide annual updating of financial information and operating data of the type included in the official statement for the primary bond offering. Bearer coupons are presented to the issuer's designated paying agent or deposited in a commercial bank for collection. Pollution control bond A debt security issued by a state, certain agencies or authorities, a local government, or development corporation to finance the construction of air- or water-pollution control facilities or sewage or solid waste disposal facilities pursuant to federal law. These components are maintained in book-entry awardspace com promo code accounts and transferred in trades (Treasury/Reserve Automated Debt Entry System). Forward floor An agreement to enter into a floor at some date in the future. A senior manager is usually used only with regard to a negotiated financing. Structured products Many different types of products are structured to some extent. Credit spread also refers to the difference between the value of two securities with similar interest rates and maturities when one is sold at a higher price than the other is purchased. Types of bond funds include open-ended mutual funds, closed-end mutual funds, and exchange traded funds.
What is a bond? Bond Derivatives - Investment Education