Examlex
Typical misalignments between product design and operations include
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments received and any gain or loss if the bond is bought at a discount or premium to its face value.
Zero-coupon Bond
A type of bond that does not pay interest during its life but is sold at a discount and matures at its face value.
Maturity
The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.
Arbitrage
The practice of buying and selling equivalent assets in different markets to take advantage of a price difference.
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