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A college freshman is about to give her first speech in class.As she walks to the podium,she feels her heart pounding much faster and harder than normal.After the speech,she notices that her heart begins to return to a normal pace because:
Default Risk Premium
The additional amount a borrower must pay to compensate the lender for assuming the risk that the borrower may default on the loan.
Clean Price
The price of a bond excluding any accrued interest; the price the bond is actually quoted at in the financial markets.
Call Provision
A clause in a bond or other fixed-income security that allows the issuer to repay the bond before its maturity date.
Canada Yield Curve
A plot of the yields on Government of Canada notes and bonds relative to maturity.
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