Federal Reserve Bank of San Francisco
Definition: A dollar denominated bond issued in the United States by foreign banks and corporations. These bonds, the U.S. equivalent of the Eurobond, pay semi-annual interest, unlike the Eurobonds, which pay annual interest, and are registered with the Securities and Exchange Commission.
Economics: Principles & Practices
Definition: Income derived from a security expressed as a percent of its market price; on stocks, the dividend divided by the closing price
Definition: The average annual rate of return on a security, including interest payments and repayment of principal, if it is held to maturity.
Federal Reserve Bank of Minneapolis
Definition: The return on a loan or investment, stated as a percentage of price.
Federal Reserve Bank of San Francisco
Definition: The return on a loan or investment, stated as a percentage of price.
Economics: Principles & Practices
Definition: Graph showing yields of securities with different maturities; normal yield curve shows securities with longer durations having higher yields due to the time value of money, inverted yield curve shows securities with shorter durations having higher yields (often thought to be an indicator of impending recession)
Definition: The relationship formed by plotting the yields of otherwise comparable fixed-income securities against their terms to maturity. Typically, yields increase as maturities lengthen. The rate of that increase determines the ”steepness” or ”flatness” of the yield curve. Ordinarily, a steepening (or flattening) of the yield curve is taken to suggest that short-term interest rates are expected to rise (or fall).
Related Term(s): Short-term interest rate