Financial Vocabulary

#181

Maturity date

Example sentences

1. The bond's maturity date is June 30, 2030.
2. The issuer repays the principal on the maturity date.
3. She checked the maturity date before buying the bond.

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#182

Yield

Example sentences

1. The bond offers a yield of 4%.
2. The investment's yield changed when its price moved.
3. He compared the yield with a savings account.

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#183

Current yield

Example sentences

1. The bond's current yield is 5%.
2. Current yield compares annual interest with the current price.
3. The analyst calculated current yield before buying.

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#184

Yield to maturity

Example sentences

1. The bond has a yield to maturity of 6%.
2. Yield to maturity assumes the bond is held until the end.
3. She compared the yield to maturity of two bonds.

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#185

Bond price

Example sentences

1. The bond price fell when interest rates rose.
2. He bought the bond when its bond price was below $1,000.
3. The market updates the bond price during the day.

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#186

Issuer

Example sentences

1. The issuer promised to repay the bondholders.
2. A government can be an issuer of bonds.
3. The investor checked the issuer's credit quality.

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#187

Corporate bond

Example sentences

1. She bought a corporate bond from a large company.
2. A corporate bond may pay more interest than a government bond.
3. The company used the corporate bond to fund a factory.

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#188

Government bond

Example sentences

1. He bought a government bond for lower risk.
2. The government bond pays interest twice a year.
3. A government bond helps the country borrow money.

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#189

Municipal bond

Example sentences

1. The city issued a municipal bond to build a school.
2. She bought a municipal bond for tax-friendly income.
3. A municipal bond is issued by a local government.

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#190

Treasury bill

Example sentences

1. He bought a Treasury bill that matures in six months.
2. A Treasury bill is a short-term government security.
3. The Treasury bill was sold below its face value.

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#191

Treasury note

Example sentences

1. The investor bought a five-year Treasury note.
2. A Treasury note pays interest regularly.
3. The price of the Treasury note rose today.

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#192

Treasury bond

Example sentences

1. She bought a 30-year Treasury bond.
2. A Treasury bond is a long-term government security.
3. The Treasury bond pays interest every six months.

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#193

Zero-coupon bond

Example sentences

1. The zero-coupon bond makes no regular interest payment.
2. He bought the zero-coupon bond below face value.
3. The investor receives the full amount when the zero-coupon bond matures.

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#194

Convertible bond

Example sentences

1. The convertible bond can become company shares.
2. She chose the convertible bond for income and possible growth.
3. The company set the conversion terms for the convertible bond.

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#195

Callable bond

Example sentences

1. The company repaid the callable bond early.
2. A callable bond may be ended by the issuer before maturity.
3. The investor checked the call date on the callable bond.

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#196

Puttable bond

Example sentences

1. The puttable bond lets the investor sell it back early.
2. He used the right in the puttable bond when rates rose.
3. A puttable bond may offer more protection to the buyer.

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#197

Credit rating

Example sentences

1. The company received a strong credit rating.
2. A lower credit rating can increase borrowing costs.
3. Investors checked the bond's credit rating.

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#198

Investment-grade bond

Example sentences

1. The fund buys only investment-grade bond issues.
2. An investment-grade bond usually has lower default risk.
3. She chose an investment-grade bond for stability.

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#199

High-yield bond

Example sentences

1. The high-yield bond pays more interest.
2. A high-yield bond also carries more risk.
3. He placed only a small amount in the high-yield bond.

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#200

Duration

Example sentences

1. The bond has a duration of seven years.
2. Longer duration usually means greater interest-rate risk.
3. The manager reduced portfolio duration when rates were rising.

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