FI features Flashcards
1
Q
tenor
A
years to maturity
2
Q
less than a year to maturity
A
capital market secutity
3
Q
more than 1 year to maturity
A
money market security
4
Q
principal/par value/ face value
A
rata kapitałowa
5
Q
fixed coupon
A
constant
6
Q
floating coupon
A
not constant MRR(market) + spread (is constant
7
Q
coupon rate and frequncy
A
8
Q
seniority
A
priority in the capital structure (secured or usecured)
9
Q
contingency provisions
A
a cluse to that allows to action if an event happens
eg. calls, puts, convertible to equity
10
Q
premium bond
A
price>par
11
Q
disquont bond
A
price<par
12
Q
par bond
A
price=par
13
Q
YTM
A
money weightened bond IRR
rate of return is YTM if
- bond does not default
- held to maturity (if we sell it before maturity)
- coupon reinvested by YTM
14
Q
yield curves
A
yields on all bonds fetuared by the same issuer
yield are rising with a time because of uncerteanty premium
15
Q
g-spread
A
difreance in yields of gov bonds and corporate
