Bond Investments

Bond Premium
A bond premium refers to the amount the purchaser pays in buying a bond that exceeds the face or call value of the bond. This premium can be amortized, reflecting the true interest rate being less than the coupon rate.
Effective Yield
Effective Yield is a measure of the actual return earned on an investment, taking into account the effects of compounding interest.
Laddering
Laddering refers to purchasing bonds that mature at various intervals to achieve greater regularity of income and protection from interest rate fluctuations.
Variable Life Insurance
Variable Life Insurance is a type of life insurance policy where the face value and death benefit can fluctuate based on the performance of investments chosen by the policyholder. The value can increase or decrease but never falls below a guaranteed minimum.

Accounting Terms Lexicon

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