Related Words

Equivalent Bond Yield: The cost per year of owning an asset over its entire life.

Policyholder Loan Bonds: Packaged loans acquired by policyholders that are secured by the cash surrender value of the policies, and are offered by a broker/dealer as bonds.

Polar Covalent Bond: A covalent bond in which atoms share electrons in an unequal fashion. The resulting molecule has regions with positive and negative charges. The presence of polar covalent bonds allows other . . . View Full Definition

Polar Bond: A bond involving electrons that are unequally shared. Polar bonds can be thought of as intermediate between the extremes represented by covalent bonds and ionic bonds.

Pickup Bond: A bond with a relatively high coupon that is close to the date at which it is callable, meaning that a fall in interest rates will most likely cause early redemption of the bond at a premium.

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

Positive Yield Curve: A positive yield curve results when the interest rate on long-term US Treasury bonds is higher than the rate on on short-term Treasury bills. You create the curve by plotting a graph with ra . . . View Full Definition

Prior-Lien Bond: A bond usually arising from reorganization with precedence over another bond of the same issuing company that is equally secured.

Prerefunded Bond: Refunded bond.

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