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Interest Rates
The expense associated with obtaining a loan, or the incentive for depositing funds, usually shown as a percentage of the original amount.
Zero-Coupon Bond
A bond that does not pay periodic interest payments but is issued at a deep discount from the face value and is redeemed at the face value at maturity.
Duration
A measure of the sensitivity of the price of a financial asset or liability to changes in interest rates, often used with bonds to assess interest rate risk.
Coupon Bond
A coupon bond is a debt security that pays the holder periodic interest payments based on a fixed interest rate until the bond matures, at which point the face value is paid to the bondholder.
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