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Tax-Exempt Bond

A bond (specifically a municipal bond) whose holder is exempted from paying taxes on its interest income. This bond is…

Tax-Free Bond

A bond that is fully exempted from taxation on its interest payment. The interest income on this bond, generally issued…

War Brides

A jargon phrase that refers to the stocks and bonds of companies whose primary business activity is defense contracting. For…

War Babies

A jargon phrase that refers to the stocks and bonds of companies whose primary business activity is defense contracting. For…

Yield Giveup Swap

A bond swap and particularly a form of the intermarket spread swap whereby an investor may be compensated for the…

War Bond

A debt security which is issued to savers by a government for the purpose of collecting money that will be...

BPS

A basis point (bps) is 0.01 percentage point and equals $1,000 annually on a contract protecting $10 million of debt...

Advance Refunded Bond

A bond which is mainly issued to refinance previously issued bonds that carry higher coupons than current market. An advance…

PECDS

An abbrevaition for par equivalent CDS spread; a measure of the creditworthiness of a bond. It sets the bond’s Z-spread…

Call Option Premium

The up-front price a call option buyer (long) pays to a call option seller (short) against the right to exercise…