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Effective convexity
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Effective convexityThe convexity of a bond calculated using cash flows that change with yields.
RELATED TERMS--------------------------------------
Convexity
Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave.
Bond
Certificate, stating that the issuer is committing himself to repay the loan, including interest and other payments, to the holder.
Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.
SIMILAR TERMS--------------------------------------
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
The amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective yield
Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
PREVIOUS AND NEXT TERMS--------------------------------------
Education IRA
A type of individual retirement account enabling the contribution of up to $500 per year tax free for each child up to the age of 18 by the parents in the family.
EEC
European Currency Unit.
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective convexity
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
The amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
RELATED TERMS--------------------------------------
Convexity
Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave.
Bond
Certificate, stating that the issuer is committing himself to repay the loan, including interest and other payments, to the holder.
Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.
SIMILAR TERMS--------------------------------------
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
The amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
Effective net worth
Net worth plus subordinated debt.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective sale
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference between the last round-lot price and the odd-lot price is the odd-lot differential.
Effective spread
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective tax rate
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective yield
Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
PREVIOUS AND NEXT TERMS--------------------------------------
Education IRA
A type of individual retirement account enabling the contribution of up to $500 per year tax free for each child up to the age of 18 by the parents in the family.
EEC
European Currency Unit.
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective call price
The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective convexity
Effective date
In an interest rate swap, the date the swap begins accruing interest.
Effective debt
The total debt owed by a firm to its creditors.
Effective duration
The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option.
Effective interest rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective margin (EM)
The amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
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This dictionary contains 24549 terms.
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