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A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Bond maturity refers to the specific future date when the principal of the bond is scheduled to be repaid to the bondholder.

The coupon rate is the annual interest rate paid by bond issuers to the bondholders, usually expressed as a percentage of the bond's face value.

Face value, also known as par value, is the value of a bond as it appears on the certificate or the amount that will be paid to the holder at maturity.

YTM is the total return anticipated on a bond if it is held until it matures, taking into account both current interest payments and the gain or loss when the bond is redeemed at face value.

Bond yield refers to the earnings generated and realized on an investment over a particular period, expressed as a percentage based on the investment cost, current market value, or face value of the security.

Clean price is the price of a bond not including any interest that has accrued. Dirty price is the bond's price including the accrued interest since the last coupon payment.

A discount bond is sold for less than its face or par value and will mature at its face value, providing a profit to the holder.

A premium bond is one that is trading above its face value, meaning investors pay more than the principal amount for the bond.

Credit risk refers to the risk that a bond issuer will default on its payment obligations to the bondholder, impacting the bond's value.

Interest rate risk is the risk that the value of a bond will decrease due to an increase in interest rates.

A callable bond can be redeemed by the issuer before its maturity date, usually at a premium above the face value.

A puttable bond allows the bondholder to force the issuer to repurchase the security at specified times before maturity.

A convertible bond can be converted into a predetermined number of shares of the issuing company's stock.

Sovereign bonds are issued by national governments and are often considered low-risk investments due to government backing.

A zero-coupon bond is a bond that doesn't pay periodic interest. Instead, it is sold at a discount and the interest income is realized at maturity when it redeems for its full face value.

The bond indenture is a legal document that specifies all the terms of the bond, such as the coupon rate, maturity date, and redeemable features.

Duration is a measure of the sensitivity of the price of a bond to a change in interest rates, expressed in years.

These bonds offer protection against inflation. The principal amount increases with inflation as measured by inflation indices, such as the Consumer Price Index (CPI).

Junk bonds are high-yield bonds with lower credit ratings, indicating a higher risk of default but potentially offering greater returns.

Senior debt is prioritized over subordinated debt for repayment in case of issuer bankruptcy, making it a safer investment.

Secured bonds are backed by collateral, whereas unsecured bonds (or debentures) are only backed by the issuer's creditworthiness and not by any collateral.

Bond rating agencies evaluate the credit quality of bonds and assign ratings that reflect the issuer's ability to repay the bond. Popular agencies are Moody's, S&P, and Fitch.

The yield curve graphically represents the interest rates of bonds (of equal quality) at different maturities, often indicating the market's perception of future interest rate movements.

Liquidity risk is the risk that an investor might not be able to buy or sell the bond easily without affecting its price significantly.

Market risk, or systematic risk, refers to the potential for investors to experience losses due to factors that affect the overall performance of the financial markets.

Reinvestment risk is the risk that future proceeds from the investment will have to be reinvested at a potentially lower rate of return.

A fixed rate bond has an interest rate that remains constant throughout the life of the bond, offering predictable income.

Variable rate bonds have an interest rate which fluctuates over the life of the bond, generally based on specified parameters or an index.