cpcu 556

An investment that promises the investor a stated amount of income periodically and, in most cases, also promises to pay the face amount at a stated maturity date

A bond's face amount or its value as of its maturity date

The interest payments or rate that an investor receives on a bond until maturity

An investor's taxable cost of a bond or the bond's original purchase price; if a bond is sold or redeemed before maturity

A bond purchased in the open market after insurance at a price less than the bond's face amount

A bond originally issued at a price less than the bond's face amount, paying no current interest

A bond purchased in the open market after issuance at a price greater than the bond's face amount

A bond issued by a private corporation that usually is based on the creditworthiness of the issuing corporation

A corporate bond backed by the full credit of the issuing corporation buth with no special lien on the corporation's property

A corporate bond backed by the credit of the issuing corporation that has a claim on assets after the claims of senior debt.

A provision in some bond issues designed to require the issuer to retire a substantial portion of the bond issue before the maturity

A provision found in a bond that allows it to be redeemed before maturity

A bond issued by a state, a county, or a city government for certain projects or purposes. The interest generated by the bond is exempt from federal income tax and from state and local income taxes in the states in which the bond is issued

A sub class of municipal bonds securred by the full faith, credit, and taxing power of the issuing state or municipality, thus offering a high level of security for the investor

A sub class of municipal bonds payable only from the proceeds of a single tax, a series of taxes, or some other specific source of revenue

A sub class of municipal bonds issued to finance various kinds of projects, such as water, sewage, gas, electrical facilities, and expressways. The principal and interest on such bonds are payable solely from tghe revenues produced by the project

a sub class of municipal bonds issued by local authorities to finance the construction of low rent housing projects and secured by the pledge of unconditional, annual contributions by the Housing Administration, a federal agency

A sub class of municipal bonds issued by a municipality or another authority but secured by lease payments made by industrial corporations that occupy or use the facilities financed by the bond issue

A municipal bond issued with insurance to protect an investor against the risk of default, thereby enhancing the bond's creditworthiness and quality rating

A tax except private activity municipal bond used to fund projects such as airports, stadiums, and student loan purposes; generates interest that is exempt from regular federal income taxation but is generally a preference item for alternative minimum tax (AMT) purposes

An obligation issued by the United States government on a discount basis and is redeemed at face value at maturity; generally has a maturity period of 13 weeks, 26 weeks, or 52 weeks

An obligation, issued by the United States government, that has a maturity from one to 10 years; issued at or near par, and its interest is paid semi annually

An obligation, issued by the United States government, that matures in more than 10 years; issued at or near par, and its interest is paid semi annually

Treasury notes or bonds issued with a fixed interest rate that is applied to a principal amount that is adjusted periodically for inflation or deflation based on an adjusted Consumer Price Index for urban consumer (cpi-u). They pay semiannual interest and then the principal amount at maturity

A registerd, noncallable, and nontransferable security, issued by the United States Government

A US savings bond sold in denominations of $50 to 10,000 with the purchase price being 50 percent of the face amount. It pays no current interest; instead, it is issued at a discount and is redeemable at face value on the maturity date

An interest paying US savings bond that pays interest every six months. It can be secured at par in exchange for an EE or a similar bond

A U.S. savings bond sale at face amount that accrues earnings until it is redeemed or matures. It accrues annual earnings at a composite reate consisting of a fixed rate for the bond's duration and a seminannual inflation rate

Securities not issued directly by the federal government, but which might have government guarantees and thus carry somewhat higher yields than comparable U.S. government securities

A corporation's equity capital. The claim that preferred stockholders have against the assets of the corporation follows the claim of bondholders but precedes that of common stockholders. Also, a company must pay dividends on its preffered stock before paying anything on its common stock

Interest bearing, redeemable evidences of time deposits issued and sold through banks and savings institutions. They are sold in varying amounts at a fixed interest rate and with maturities ranging from several months to 10 years or more

A certificate of deposit that is not redeemable by the issuer before maturity but can be traded in a secondary market before maturity

Certificates of deposit whose principal is gauranteed by the issuer and often is insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) but whose investment return is based on some equity index, provided that the purchaser holds the CD until maturity

Bond issues that receive one of the top four investment quality ratings from one or both of the two main bond rating agencies, Moody's and Standard & Poor's

Bonds generally considered those that receive investment quality ratings below investment grade