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Treasury bond Long-term debt security issued by the U.

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Discount The amount by which a bond's market price is lower than its issuing price par value. A note may be secured by future revenues, such as taxes.

Bond Glossary

Investors of callable bonds should always do the comparison to determine a bond's most conservative potential return. Debt security Any security that represents loaned money that must be repaid to the lender.

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Average maturity The average time that a mutual fund's bond holdings will take to be fully payable. Agency security Debt security issued or guaranteed by an agency of the federal government or by a government-sponsored enterprise GSE. Bond rating A method of evaluating the quality and safety of a bond. Coupon yield The annual interest rate established when the bond is issued.
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