Year To Market

Young Treasury Model

Your Total Money

Yearly Total Margin

Yield To Maturity

Yield Term Multiplier

The issuer's board of directors decides to cut its dividend

The real value of future cash flows is eroded by inflation

The bond's resale price changes due to movements in interest rates, if it is not held until maturity

The issuer's stock is delisted from the exchange

The issuer defaults or is downgraded by rating agencies

The exchange rate moves unfavorably for a foreign-currency investment

D (default)

A

CCC

AAA

BBB

BB

The issue price of the bond, unchanged throughout its life

The quoted/posted price (e.g., in the financial press), which excludes accrued interest

The present value of all the bond's cash flows (coupons + principal)

The average of the purchase and sale price over 10 years

The quoted price plus accrued interest

The present value of the face value only, excluding coupons

The issuer's board of directors decides to cut its dividend

The real value of future cash flows is eroded by inflation

The bond's resale price changes due to movements in interest rates, if it is not held until maturity

The issuer's stock is delisted from the exchange

The exchange rate moves unfavorably for a foreign-currency investment

The issuer fails to make, in full or in part, its coupon payments and/or repayment of principal