Economy 2 Markers for G.S Mains Paper 2
They generally ask ( 2 Mark X 15 Question) = 30 M question from this each year.
This E-book contains 230 Terms!
Economy 2 Markers for G.S Mains Paper 2
They generally ask ( 2 Mark X 15 Question) = 30 M question from this each year.
This E-book contains 230 Terms!
Economy 2 Markers for G.S Mains Paper 2
They generally ask ( 2 Mark X 15 Question) = 30 M question from this each year.
This E-book contains 230 Terms!
S Mains Paper 2 They generally ask ( 2 Mark X 15 Question) = 30 M question from this each year.
This E-book contains 230 Terms!
Amounts owing on open account to creditors for goods and services.
Accounts Payable Accounts Receivable Money owed to a business for merchandise or services sold on open account. Accounting method whereby income and expense items are Accrual Basis recognized as they are earned or incurred, even though they may not have been received or actually paid in cash. Bonds that do not make periodic interest payments, but instead Accrual Bonds accrue interest until the bond matures. Also known as zero-coupon bonds. Interest that has accumulated between the most recent payment and the sale of a security, i.e. deemed to be earned on a security but not Accrued Interest yet paid to the investor. At the time of the sale, the buyer pays the seller the security's price plus accrued interest Acquisition One company taking over controlling interest in another company. Adjusted EPS Adjusted Earnings per share AFM Amman Financial Market After-tax Return An investment's return after all income taxes have been deducted. Acronym for Arabian General Investment Corporation. The company AGICO has changed its name to SHUAA Capital psc in April 2001. Measure of risk-adjusted performance. An alpha is usually generated Alpha by regressing the security or mutual fund's excess return on benchmark index's excess return. Receipt for the shares of a foreign-based corporation held in the vault American Depository of a U.S. bank and entitling the shareholder to all dividends and capital Receipt (ADR) gains. Accounting procedure that gradually reduces the cost value of a limited life or intangible asset, such as goodwill, through periodic Amortization charges to income. Amortization also refers to the reduction of debt by regular-payments of interest and principal suffici Annual Meeting Once-a-year meeting when the managers of a company report to stockholders on the year's results, and the board of directors stands for election for the next year. Yearly record of a corporation's financial condition that must be distributed to shareholders. Included in the report is a escription of Annual Report the company's operations as well as its balance sheet and income statement. A long-term investment that provides tax-deferred growth and income Annuity at regular intervals for as long as you specify. Profiting from differences in price when the same security, currency, Arbitrage or commodity is traded on two or more markets. The price at which a market maker is willing to sell a specified quantity Ask Price of a particular security. Anything having commercial or exchange value that is owned by a Asset business, institution, or individual. Apportioning of investment funds among categories of assets, such as cash equivalents, stocks, fixed-income investments, and such tangible Asset Allocation assets as real estate, precious metals, and collectibles. Asset allocation affects both risk and return and is a cen Assets Under The value of the assets that a company manages, but does not own. Management Maximum number of shares of any class a company may legally create under the terms of its articles of incorporation. Normally, a Authorized Shares corporation provides for future increases in authorized stock by vote of the stockholders. The corporation is not required to Open account balance or loan receivable that has proven uncollectible Bad Debt and is written off. System of recording all of a country's economic transactions with the Balance of Payments rest of the world during a particular time period. Net difference over a period of time between the value of a country's Balance of Trade imports and exports of merchandise. Financial report showing the status of a company's assets, liabilities, Balance Sheet and owners' equity on a given day. A fund that invests in both stocks and bonds whose objective is both Balanced Fund growth and income. One one-hundredth of 1 percent. Yield differences among fixed- Basis point income securities are stated in basis points Bear Market Prolonged period of falling prices. A security that has no identification as to owner. It is presumed to be owned by the person who holds it. Bearer securities are freely Bearer security negotiable, since ownership can be quickly transferred from seller to buyer by delivery of the instrument. However, note Coefficient measuring a stock's relative volatility. The beta is the Beta covariance of a stock in relation to the rest of the stock market. measure of the relative volatility of a stock or other security as compared to the volatility of the entire market (usually measured for a Beta benchmark index). A beta above 1.0 shows greater volatility than the overall market, while betas below 1.0 are less v Bid The price at which a buyer will purchase a security. The price at which a market-maker is willing to purchase a specified Bid Price quantity of a particular security. Common stock of a nationally known company that has a long record Blue Chip of profit growth and dividend payment and a reputation for quality management, products, and services. Group of individuals elected, usually at an annual meeting, by the Board of Directors shareholders of a corporation and empowered to carry out certain tasks as spelled out in the corporation's charter. Any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of Bond money, usually at specific intervals, and to repay the principal amount of the loan at maturity. A partial list of bond insurers includes American Municipal Bond Bond insurers and Assurance Corp. (AMBAC), ACA Financial Guaranty, Asset Guaranty reinsurers Insurance Co., AXA Re Finance, Capital Guaranty Insurance Co., Capital Markets Assurance Corp. (CapMAC), Capital Reinsurance Co An indicator of the creditworthiness of specific bond issues. These ratings are often interpreted as an indication of the likelihood of Bond Ratings default on the part of the respective bond issuers. Bonds with the smallest default probability are rated AAA (or Aaa) Also known as a capitalization or scrip issue. This is when a company issues free shares to a company's existing shareholders. No money Bonus Issue changes hands and the share price falls pro rata. This is usually used as an exercise to make the shares more marketabl A method of recording and transferring ownership of securities Book-entry electronically, eliminating the need for physical certificates. An investment strategy that focuses on individual stocks, rather than Bottom-Up Approach general market trends. It assumes strong companies can perform well independent of the market environment. Person who acts as an intermediary between a buyer and seller, Broker usually charging a commission. BSE Bahrain Stock Exchange Budget Estimate of revenue and expenditure for a specified period. Excess of spending over income for a government, corporation, or Budget Deficit individual over a particular period of time. Excess of income over spending for a government, corporation, or Budget Surplus individual over a particular period of time. BVPS Book Value per share Right to buy shares of a particular stock or stock index at a Call Option predetermined price before a preset data, in exchange for a premium. A dollar amount, usually stated as a percent of the principal amount Call premium called, paid by the issuer as a "penalty" for the exercise of a call provision. Bonds which are redeemable by the issuer prior to the maturity date Callable bonds at a specified price at or above par. Cap The top interest rate that can be paid on a floating-rate security. Long-term asset that is not bought or sold in the normal course of Capital Asset business. Difference between an asset's purchase price and selling price, when Capital Gain the difference is positive. Capital Markets Markets where capital funds - debt and equity - are traded. Stock authorized by a company's charter. The number and value of Capital Stock issued shares are normally shown, together with the number of shares authorized, in the capital accounts section of the balance sheet. Rate of interest used to convert a series of future payments into a Capitalization Rate single present value. A business that generates a continuing flow of cash. Such a business usually has well-established brand names whose familiarity stimulates Cash Cow repeated buying of the products. Stocks that are cash cows have dependable dividends. Cash payment to a corporation's shareholders, distributed from Cash Dividend current earnings or accumulated profits. Instruments or investments of such high liquidity and safety that they Cash Equivalents are virtually as good as cash. Examples are Money Market Funds and Treasury Bills. Type of fund that has a fixed number of shares usually listed on a Closed-End Fund major stock exchange. Unlike open-end funds, closed-end funds do not stand ready to issue or redeem shares on a continuous basis. An investment company created with a fixed number of shares which Closed-end are then traded as listed securities on a stock exchange. After the investment company initial offering, existing shares can only be bought from existing shareholders. A bond backed by a pool of mortgage pass-through securities or CMO (Collateralized mortgage loans, which generally supports several classes of Mortgage Obligation) obligations. Collar Upper and lower limits (cap and floor, respectively) on the interest rate of a floating-rate security. Units of ownership of a public corporation. Owners typically are entitled to vote on the selection of directors and other important Common Stock matters as well as to receive dividends on their holdings. In the event that a corporation is liquidated, the claims of sec Consolidated Financial statement that brings together all assets, liabilities, and Financial Statement operating accounts of a parent company and its subsidiaries. Ownership of more than 50% of a corporation's voting shares. A much smaller interest, owned individually or by a group in combination, can Controlling Interest be controlling if the other shares are widely dispersed and not actively voted. Corporate securities (usually preferred shares or bonds) that are Convertibles exchangeable for a set number of another form (usually common shares) at a prestated price. A legal entity, separate and distinct from the persons who own it. It has three chief distinguishing features: limited liability (owners can Corporation lose only what they invest); easy transfer of ownership through the sale of shares; and continuity of existence. Rate of return that a business could earn if it chose another investment with equivalent risk - in other words, the opportunity cost Cost of Capital of the funds employed as the result of an investment decision. Cost of capital is also calculated using a weighted average Stocks that tend to rise in value when the economy is turning down or Countercyclical Stocks is in recession. This part of a bearer bond denotes the amount of interest due, and on what date and where payment will be made. Bearer coupons are Coupon presented to the issuer's designated paying agent for collection. With registered bonds, physical coupons don't exist. (See " CSE Casablanca Stock Exchange Current assets divided by current liabilities. The ratio shows a Current Ratio company's ability to pay its current obligations from current assets. The ratio of interest to the actual market price of the bond, stated as a percentage. For example, a bond with a current market price of Current yield $1,000 that pays $80 per year in interest would have a current yield of 8%. The Committee on Uniform Security Identification Procedures, established under the auspices of the American Bankers Association to CUSIP develop a uniform method of identifying securities. CUSIP numbers are unique nine-digit numbers assigned to each series of se Bank or other financial institution that keeps custody of stock Custodian certificates and other assets of a fund, individual, or corporate client. Cyclical Stocks Stocks that tend to rise quickly when the economy turns up and to fall quickly when the economy turns down. Date on which a shareholder must officially own shares in order to be Date of Record entitled to a dividend. Dated date (or issue The date of a bond issue from which the first owner of a bond is date) entitled to receive interest. Unsecured debt obligation, issued against the general credit of a Debenture corporation, rather than against a specific asset. Failure to pay principal or interest when due. Defaults can also occur for failure to meet nonpayment obligations, such as reporting Default requirements, or when a material problem occurs for the issuer, such as a bankruptcy. Stocks and bonds that are more stable than average and provide a Defensive Securities safe return on an investor's money. When the stock market is weak, defensive securities tend to decline less than the overall market. Removal of a company's security from an exchange because the firm Delisting did not abide by some regulation or the stock does not meet certain financial ratios or sales levels. Amortization of fixed assets, such as plant and equipment, so as to Depreciation allocate the cost over their depreciable life. Greatly reducing government regulation in order to allow freer Deregulation markets to create a more efficient marketplace. A contract whose value is based on the performance of an underlying Derivative Instrument financial asset, index, or other investment. Lowering of the value of a country's currency relative to gold and/or Devaluation the currencies of other nations. The amount by which the purchase price of a security is less than the Discount principal amount, or par value. Short-term obligations issued at discount from face value, with maturities ranging from overnight to 360 days. They have no periodic Discount note interest payments; the investor receives the note's face value at maturity. Discount rate The rate the Federal Reserve charges on loans to member banks. Div Yield Dividend Yield Spreading of risk by putting assets in several categories of Diversification investments. 1. A company's payment of profits to its stockholders. 2. A mutual fund's payment of profits to its shareholders. 3. A return of part of the Dividend premium on participating insurance to reflect the difference between the premium charged and the combination of ac Percentage of earnings paid to shareholders in cash. In general, the Dividend Payout Ratio higher the payout ratio, the more mature the company. Annual percentage of return earned by an investor on a stock. The Dividend Yield yield is determined by dividing the amount of the dividends per share by the current market price per share. A popular index in the United States used to measure and report value Dow Jones Industrial changes in representative US stock groupings. "The Dow" Average (DJIA) is a price-weighed average of 30 actively traded blue chip stocks primarily of industrial companies. The weighted maturity of a fixed-income investment's cash flows, Duration used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates. DVPS Dividend per share Earnings Per Share Portion of a company's profit allocated to each outstanding share of (EPS) common stock. EFG EFG-Hermes (Egypt) A provision within a bond giving either the issuer or the bondholder an option to take some action against the other party. The most common Embedded option embedded option is a call option, giving the issuer the right to call, or retire, the debt before the scheduled matu EMNEX Emirates Bank International UAE Equity Index EPS Earnings per Share Equity Fund A fund that invests primarily in stocks. Also known as a stock fund. Bond denominated in U.S. dollars or other currencies and sold to Eurobond investors outside the country whose currency is used. EV Enterprise Value EV / Equity Enterprise Value to Equity Ratio The interval between a fund distribution's record date and payable Ex-Dividend date. During this period, investors who purchase shares are not entitled to the distribution payment. Price at which the stock or commodity underlying a call or put opti on Exercise Price can be purchased (call) or sold (put) over the specified period The risk that rising interest rates will slow the anticipated rate at which mortgages or other loans in a pool will be repaid, causing Extension risk investors to find their principal committed longer than expected. As a result, they may miss the opportunity to earn a hi Par value (principal or maturity value) of a security appearing on the Face amount face of the instrument The interest rate charged by banks on loans of their excess reserve funds to other banks. The Federal Reserve's ability to add or withdraw Federal funds rate reserves from the banking system gives it close control over this rate. Changes in the federal funds rate are sometim Fiscal Year A 365-day accounting period for which a company or mutual fund prepares financial statements. Tangible property used in the operations of a business, but not Fixed Asset expected to be consumed or converted into cash in the ordinary course of events. A bond for which the interest rate is adjusted periodically according to Floating-rate bond a predetermined formula, usually linked to an index. Floor The lower limit for the interest rate on a floating-rate bond. Purchase or sale of a specific quantity of a commodity, government Forward Contract security, foreign currency, or other financial instrument at the current or spot rate, with delivery and settlement at a specified future date. Practice whereby a securities or commodities trader takes a position Front Running to capitalize on advance knowledge of a large upcoming transaction expected to influence the market price. An agreement to buy or sell a specific amount of a commodity or Futures Contract financial instrument at a particular price on a stipulated future date. General obligation A municipal bond secured by the pledge of the issuer's full faith, credit bond and taxing power. Receipt of shares in a foreign-based corporation traded in capital Global Depository markets around the world. The advantage to the issuing company is Receipt (GDR) that they can raise capital in many markets, as opposed to just their home market. The advantage of GDRs to local investor Stock of a corporation that has exhibited faster-than-average gains in Growth Stock earnings over the last few years and is expected to continue to show high levels of profit growth. Strategy used to offset investment risk, typically from adverse Hedge movements in interest rates or securities prices. A perfect hedge is one eliminating the possibility of future gain or loss. Private investment partnership or an off-shore investment corporation in which the general partner has made substantial personal Hedge Fund investment, and whose offering memorandum allows for the fund to take both long and short positions, use leverage and derivati Bonds issued by lower-rated corporations, sovereign countries and High-yield bond other entities rated Ba or BB or below and offering a higher yield than more creditworthy securities, sometimes known as junk bonds. A company that owns enough voting stock in another firm to control Holding Company management and operations by influencing or electing its board of directors. Also called parent company. Takeover of a company against the wishes of current management Hostile Takeover and the board of directors. IFCG International Finance Corporation Global Index Statistical composite that measures changes in the economy or in Index financial markets, often expressed in percentage changes from a base period. Initial Public Offering A corporation's first offering of stock to the public. (IPO) Practice of buying and selling shares in a company's stock by that Insider Trading company's management or board of directors, or by a holder of more than 10% of the company's shares. Right or nonphysical resource that is presumed to represent an Intangible Asset advantage to the firm's position in the marketplace. Such assets include copyrights, patents, trademarks, goodwill, and franchises. Compensation paid or to be paid for the use of money. Interest is Interest generally expressed as an annual percentage rate. Internal Rate of Discount rate at which the present value of the future cash flows of an Return (IRR) investment equal the cost of the investment. Bonds considered suitable for preservation of invested capital by the Investment-grade rating agencies and rated Baa or BBB or above. An entity which issues and is obligated to pay principal and interest on Issuer securities. A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds, sometimes Junk Bond known as high-yield. This low-rated bond as it offers higher interest rates along with higher risk, makes it more appropr KSE Kuwait Stock Exchange Leverage The use of borrowed money to increase investing power. Takeover of a company, using borrowed funds. Most often, the target Leveraged Buyout company's assets serve as security for the loans taken out by the acquiring firm. Liability Claim on the assets of a company. LIBOR (London The rate banks charge each other for short-term Eurodollar loans. Interbank Offered LIBOR is frequently used as the base for resetting rates on floating - Rate) rate securities. Ability to buy or sell an asset quickly and in large volume without Liquidity substantially affecting the asset's price. Purchase of all of a company's publicly held shares by the existing Management Buyout management, which takes the company private. Charge against investor assets for managing the portfolio of an open- Management Fee or closed-end fund as well as for such services as shareholder relations or administration. Adjust the valuation of a security or portfolio to reflect current market Mark to the Market values. Value of a corporation as determined by the market price of its issued Market Capitalization and outstanding common stock. It is calculated by multiplying the number of outstanding shares by the current market price. A measure of the ease with which a security can be sold in the Marketability secondary market. Maturity The date when the principal amount of a security is payable. Date on which the principal amount of a note, bond, certificate of Maturity Date deposit, or other debt security becomes due and payable. Combination of two or more companies, either through a pooling of interests, where the accounts are combined; a purchase, where the Merger amount paid over and above the acquired company's book value is carried on the books of the purchaser as goodwill; or a con Interest of shareholders who, in the aggregate, own less than half the Minority Interest shares in a corporation. Control of the production and distribution of a product or service by Monopoly one firm or a group of firms acting in concert. A security representing a direct interest in a pool of mortgage loans. Mortgage pass- The pass-through issuer or servicer collects payments on the loans in through the pool and "passes through" the principal and interest to the security holders on a pro rata basis. MSM Muscat Securities Market Also known as an open-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest pooled Mutual fund cash of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell and redeem their shar Option for which the buyer or seller has no underlying security Naked Option position. NBAD National Bank of abu Dhabi The price of a share of a fund, net of sales charges. Price may vary Net Asset Value (NAV) daily. Method used in evaluating investments whereby the net present value Net Present Value of all cash flows (such as the cost of the investment) and cash inflows (NPV) (returns) is calculated using a given discount rate, usually a rquired rate of return. An investment is acceptable Net Worth Amount by which assets exceed liabilities. NIAT Net Income After Tax A bond that cannot be called for redemption by the issuer before its Non-callable bond specified maturity date. Financing that does not add debt on a balance sheet and thus does not Off-Balance-Sheet affect borrowing capacity as it would be determined by financial Financing ratios. Offer The price at which a seller will sell a security. Offering price The price at which members of an underwriting syndicate for a new issue will offer securities to investors. A listed fund that continually creates new shares on demand. The fund Open-End Fund shareholders buy the shares at net asset value and can redeem them at any time at the prevailing market price. Market in which securities transactions are conducted through a Over the Counter telephone and computer network connecting dealers in stocks and (OTC) bonds, rather than on the floor of an exchange. Underwriting term describing a new stock issue where there are more Oversubscribed buyers than available shares. P/B Price to Book Ratio P/E Price to Earnings Ratio Par value The principal amount of a bond or note due at maturity. Place where principal and interest are payable. Usually a designated Paying agent bank or the office of the treasurer of the issuer. Price to Book Ratio; Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing PB current stock price by common shareholder equity per share (book value), style='mso-spacerun:yes'> </span>adjusted for stock splits. Strategic move by a takeover-target company to make its stock less Poison Pill attractive to an acquirer. The amount by which the price of a security exceeds its principal Premium amount. The unscheduled partial or complete payment of the principal amount Prepayment outstanding on a mortgage or other debt before it is due. The risk that falling interest rates will lead to heavy prepayments of Prepayment risk mortgage or other loans-forcing the investor to reinvest at lower prevailing rates. Value today of a future payment, or stream of payments, discounted Present Value at some appropriate compound interest rate. Price of a stock divided by its earnings per share. The P/E ratio may Price/Earnings Ratio either use the reported earnings from the latest year (called a trailing (P/E) P/E) or employ an analyst's forecast of next year's earnings (called a forward P/E). Primary market The market for new issues. Principal The face amount of a bond, payable at maturity. Sale of stocks, bonds, or other investments directly to an institutional Private Placement investor. Process of converting a publicly operated enterprise into a privately Privatization owned and operated entity. Action by short-term securities or commodities traders to cash in on Profit Taking gains earned on a sharp market rise. Formal written offer to sell securities that sets forth the plan for a Prospectus proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Contract that grants the right to sell at a specified price a specific Put Option number of shares by a certain date. Cash, marketable securities, and accounts receivable divided by Quick Ratio current liabilities. Designations used by credit rating agencies to give relative indications Ratings of credit quality. Realized Profit (or Profit or loss resulting from the sale or other disposal of a security. Loss) A bond whose owner is registered with the issuer or its agent. Transfer Registered bond of ownership can only be accomplished when the securities are properly endorsed by the registered owner. The risk that interest income or principal repayments will have to be Reinvestment risk reinvested at lower rates in a declining rate environment. REMIC (Real Estate Because of changes in the 1986 Tax Reform Act, most CMOs are now Mortgage Investment issued in REMIC form to create certain tax advantages for the issuer. Conduit) The terms REMIC and CMO are now used interchangeably. An investor who buys securities on his own behalf, not for an Retail Investor organization. Retained Earnings Net profits kept to accumulate in a business after dividends are paid. Amount, expressed as a percentage, earned on a company's common Return on Equity stock investment for a given period. A municipal bond payable from revenues derived from tolls, charges Revenue bond or rents paid by users of the facility constructed with the proceeds of the bond issue. Offering of common stock to existing shareholders who hold rights Rights Offering that entitles then to buy newly issued shares at a discount from the price at which shares will later be offered to the public. ROaA Return on Average Assets RoaE Return on Average Equity Secondary market Market for issues previously offered or sold. Venture capitlist's first contribution toward the financing or capital Seed Money requirements of a start-up business. Sale of a security not owned by the seller; a technique used (1) to take Selling Short advantage of an anticipated decline in the price or (2) to protect a profit in a long position. Settlement date The date for the delivery of securities and payment of funds. A measure of a portfolio's excess return relative to the total variability Sharpe Ratio of the portfolio. SHUAA Arabic acronym for Arabian General Investment Corporation Sinker A bond with a sinking fund. Money set aside by an issuer of bonds on a regular basis, for the Sinking fund specific purpose of redeeming debt. Risk that a foreign government will default on its loan or fail to honor Sovereign Risk other business commitments because of a change in national policy. Assumption of risk in anticipation of gain but recognizing a higher than Speculation average possibility of loss. The square root of the variance. A measure of dispersion of a set of Standard deviation data from its mean. Stock Dividend Payment of a corporate dividend in the form of stock rather than cash. The sale of a block of bonds and the purchase of another block of Swap similar market value. Swaps may be made to establish a tax loss, upgrade credit quality, extend or shorten maturity, etc. Ideal sought in corporate mergers and acquisitions that the Synergy performance of a combined enterprise will exceed that of its previously separate parts. An investment strategy that focuses on general market trends and Top-Down Approach selects specific stock sectors that can benefit from these broad trends. Annual return on an investment including appreciation and dividends Total Return or interest. Trade date The date when the purchase or sale of a bond is executed. A party appointed by an issuer to maintain records of securities Transfer agent owners, to cancel and issue certificates and to address issues arising from lost, destroyed or stolen certificates. Stock reacquired by the issuing company and available for retirement Treasury Stock or resale. A bank designated by the issuer as the custodian of funds and official Trustee representative of bondholders. A measure of trading activity; the volume of shares traded as a percent of total shares listed during a specified period, usually a day or Turnover a year. In the case of mutual funds, turnover is a measure of trading activity during the previous year, expressed as To assume the risk of buying a new issue of securities from the issuing Underwrite corporation or government entity and reselling them to the public. Investment funds created with a fixed portfolio of investments that never changes over the life of the trust. They are created by brokerage Unit investment trust houses, and are liquidated as investments within the trust are paid off. They provide a steady, periodic flow of inc Characteristic of a security, commodity, or market to rise or fall Volatility sharply in price within a short-term period. Trading activity near the end of a quarter or fiscal year that is designed Window Dressing to dress up a portfolio to be presented to clients or shareholders. The annual percentage rate of return earned on a security. Yield is a Yield function of a security's purchase price and coupon interest rate. A line tracing relative yields on a type of security over a spectrum of Yield curve maturities ranging from three months to 30 years. A yield on a security calculated by assuming that interest payments Yield to call will be paid until the call date, when the security will be redeemed at the call price. A yield based on the assumption that the security remains outstanding to maturity. It represents the total of coupon payments until maturity, Yield to maturity plus interest on interest, and whatever gain or loss is realized from the security at maturity. A bond where no periodic interest payments are made. The investor Zero-coupon bond receives one payment, which includes principal and interest, at redemption (call or maturity).