Tag: bond

Treasury Inflation Protected Securities

Understanding TIPS Treasury Inflation Protected Securities (TIPS) is a low risk investment which is backed by the U.S government and aims to protect investors...

Index Fund

DefinitionAn index fund is a mutual fund or exchange-traded fund designed to follow certain preset rules so that the fund can a specified basket...

Tax Anticipation Note (TAN)

What is 'Tax Anticipation Note - TAN' A short-term debt security issued by a state or local government to finance an immediate...

Dealer-Median Prepayment Speed

What is 'Dealer-Median Prepayment Speed' The median value of all Wall Street securities dealers' prepayment speed estimates for the underlying mortgages used...

Day-Count Convention

DefinitionIn finance, a day count convention determines how interest accrues over time for a variety of investments, including bonds, notes, loans, mortgages, medium-term notes,...
effective duration

The Concept of Effective Duration

The concept of effective duration is a way to evaluate a bond's price sensitivity to changes in interest rates. It accounts for the uncertainty...

Dated Date

What is 'Dated Date' The date at which interest begins to accrue on a fixed-income security. Investors who purchase a fixed-income security...
dividend yield

Dividend Yields

What is a dividend yield A dividend yield is a measurement of how much a company pays out in dividends each year relative to its...

De Minimis Tax Rule

What is the 'De Minimis Tax Rule' The De Minimis tax rule is a rule that states that capital gains tax must...

Warrant

What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally...

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