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Basis Points
A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.
Yield To Maturity
The total return anticipated on a bond if held until its maturity date, factoring in its current market price, face value, interest rate, and time to maturity.
Perpetuity
A type of financial instrument that offers indefinite or endless payments to the holder, often used to represent the value of fixed interest stocks.
Compound Rate
The rate at which a sum of money grows exponentially over time, considering the reinvestment of interest or earnings.
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