A - B | C | D - E | F - I | L - M | N - P | Q - S | T - Z

T

Tax Base - The total property and resources subject to taxation.

Tax Swap - The simultaneous purchase and sale of non-identical bonds to (1) take capital losses on bonds sold, (2) while maintaining tax-free interest income levels from the bonds purchased. A "swap" is normally instituted by a client who needs to offset capital gains.

Taxable Equivalent Yield - The yield an investor would have to earn from a taxable security to equal the value of a tax-exempt security of the same credit quality.

Term Bond - A bond of an issue that has a single stated maturity date. These bonds are usually quoted in price rather than yield. They comprise all or a large part of a particular issue that come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity or for payment at maturity.

U

Unrated Bond - A bond without a rating. Such bonds are normally presumed to be speculative when sold in the new issue market; seasoned good-quality secondary-market bonds, however, will frequently lack a current rating from one or both services.

Y

Yield to Call - The rate of return to the investor earned from payments of principal and interest, with interest compounded semiannually at the stated yield presuming that the security is redeemed prior to its maturity date.

Yield to Maturity - Annual percentage return on an investment calculated to maturity. The normal basis for quotes on municipal bonds.

Z

Zero Coupon Bond - A bond that does not pay current interest. "Zeros" are normally purchased at discounted prices, with investment returns payable at maturity or upon call.