Unit 2: Debt Securities

Bonds

The federal government

Par value

Maturity Date

Bond Indenture

Liquidity

Debt service

Call feature

Escrow

Termination

Municipal bonds

Nominal Yield

Current Yield

Yield to Maturity

Basis

Yield curve

Flat

Secured Bonds

Unsecured Bonds

Debentures

NYSE

Convertible bonds

Dilution

Treasury Bills

Treasury bonds

Treasury Receipts

STRIPS

CPI

Ginnie Mae

Interest rate risk

Prepayment risk

YES

Freddie Mac

Fannie Mae

Dated date

Securitization

Plain Vanilla CMO

PSA

Inverse Floater CMO

Series EE Bonds

Money Market Securities

Banker's Acceptance

Commercial Paper

Interest

Prime Rate

Eurodollars

Exchange rate