The use of borrowed money to increase investing power.

The present value is a single number that expresses a flow of current and future income or payments in terms of an equivalent lump sum received or paid today. The lower limit for the interest rate on a floating-rate bond. Yield is a function of a security's purchase price and coupon interest rate. However, each company can set its own eligibility requirements. The rate the Federal Reserve charges on loans to member banks. They thought it would be a good investment that they could later sell for a higher price.

Interest deemed to be earned on a security but not yet paid to the investor. The weighted maturity of a fixed-income investment's cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates. Some bonds, such as short-term bills or long-term zero-coupon bonds, promise only a single payment at the bond's maturity when the principal comes due.

Many states also impose state income taxes on distributions. Consumer Price Index for All Urban Consumers CPI-U. Klotz, the president and co-founder of FMSbonds, Inc. Par value principal or maturity value of a security appearing on the face of the instrument. Money set aside by an issuer of bonds on a regular basis, for the specific purpose of redeeming debt. Net capital gains recognized on securities held by the fund one year or less are distributed as short-term capital gains. Place where principal and interest are payable-usually a designated bank or the office of the treasurer of the issuer. Check back here often to keep up-to-date on the latest muni market developments. The date when the principal amount of a security is payable.