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Most municipal bonds are issued in casinos en louisiana a minimum denomination of 5,000.
As an example, a 5-year duration means that a bond will decrease in value by 5 if interest rates rise 1 and increase in value by 5 if interest rates fall.
Perpetual floating-rate note A floating-rate note with no stated maturity date.
For example, a 1,000 par amount bond which is currently valued at 980 would be said to be trading at a two percent discount.Private activity bond Under the 1986 Code, PABs are defined as any municipal obligation, irrespective of the purpose for which it is issued or the source of payment, if more than 10 of the proceeds of the issue will finance property that will be used.Call Actions taken to pay the principal amount prior to the stated maturity date, in accordance with the provisions for call stated in the proceedings and the securities.Asset swaps can be a tool to understand which bond or bonds maximize the spread or price over a reference interest rate benchmark, almost always libor, the London InterBank Offered Rate.As an example, a county usually includes several smaller governmental units and its debt is apportioned to them for payment based on the ratio of the assessed value of each smaller unit to the assessed value of the county.Callable bonds Bonds that are redeemable by the issuer prior to the maturity date, at a specified price at or above par.Current yield The ratio of the interest rate payable on a bond to the actual market price of the bond, stated as a percentage.Non-callable bond A bond that cannot be called for redemption by the issuer before its specified maturity date.
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