Related Words

Bond Carrying Value: The face value of bonds minus the unamortized discount or plus the unamortized premium.

Present Value: The present value of a future payment, or the time value of money, is what money is worth now in relation to what you think it'll be worth in the future based on expected earnings. For examp . . . View Full Definition

Prerefunded Bond: Refunded bond.

Premium Bond: A bond that is selling for more than its par value.

Positive Covenant (Of A Bond): A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.

Present Value Factor: Factor used to calculate an estimate of the present value of an amount to be received in a future period. If the opportunity cost of funds is 10% over next year, the factor is [1/(1 + 0.10)].

Price Value Of A Basis Point (PVBP): Also called the dollar value of a basis point; a measure of the change in the price of a bond if the required yield changes by one basis point.

Present Value Of Growth Opportunities: Net present value (NPV) of investments the firm is expected to make in the future.

Present Value Of An Annuity: The value today of a series of equally spaced, equal-amount payments to be made or received in the future given a specified interest rate.

Present Value Of $1: The value today of $1 to be received or paid at some future date given a specified interest rate.