Seasoned bond and Semi-annual rate: Difference between pages

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''Securities - secondary market.''
The semi-annual rate is the simple annual interest quotation for compounding twice a year.  


A seasoned security is one trading in the secondary market that has been in issue long enough to have a stable market price.
For example if the semi-annual rate is quoted as 10%, then the periodic interest accruing is 5% (= 10% x 6/12) per six month period.
 
A semi-annual rate is an example of a nominal annual rate.
 
Not to be confused with the ''annual effective'' rate, which in this case would be = 1.05<sup>2</sup> - 1 = 10.25%.




== See also ==
== See also ==
* [[Bond]]
* [[Annual effective rate]]
* [[Greenium]]
* [[Nominal annual rate]]
* [[Issue]]
* [[Periodic rate of interest]]
* [[Issuer]]
 
* [[New issue concession]]
[[Category:Interest_Rate_Risk]]
* [[New issue premium]]
* [[Primary market]]
* [[Seasoned issuer]]
* [[Seasoned security]]
* [[Secondary curve]]
* [[Secondary market]]
* [[Security]]

Revision as of 13:59, 9 October 2013

The semi-annual rate is the simple annual interest quotation for compounding twice a year.

For example if the semi-annual rate is quoted as 10%, then the periodic interest accruing is 5% (= 10% x 6/12) per six month period.

A semi-annual rate is an example of a nominal annual rate.

Not to be confused with the annual effective rate, which in this case would be = 1.052 - 1 = 10.25%.


See also