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Interest Rate Risk

Generally, it is the risk that arises from changes in interest rate which impact the value of interest-bearing securities/ investments...

Odd Coupon

An interest payment on a bond that is more or less than interest payment of typical six months. This is...

Irregular Coupon

An interest payment on a bond that is more or less than interest payment of typical six months. This is...

Cum Div

An abbreviated form of cum dividend; a stock trades cum dividend (with or including dividend) when buyers qualify to receive...

Cum Dividend

A stock trades cum dividend (with or including dividend) when buyers qualify to receive the next dividend payment. The cum-dividend...

Cum Interest

In relation to fixed interest bearing securities (bonds, notes, debentures, etc), cum interest includes, in addition to the cost or...

Add-on Interest

A term synonym with add-on yield; in general, it refers to interest that is paid at the maturity date of...

Credit DV01

With respect to a convertible bond, it is the change in the bond price resulted from a single basis point increase in the credit spread. In...

Capitalizing Bond

A bond in which a percentage of coupon payments is converted into capital (principal). In other words, the capital amount outstanding is increased over...

Accrued Interest

The interest which is earned by the holder of a debt instrument or interest rate derivative but not yet paid. In bonds, it is...