Bank Analysis School

Internal Use Only

Investment Terminology

Premium & Discount

Amortized Cost (a.k.a. book value)

Par Value

Market Value

Maturity Date

Coupon Rate

Pre-Payment

Yield to Maturity

Investments Reference Doc in the E-Binder includes definitions

Internal Use Only

Learning Objectives (Investments)

1 – Impact on Other Components

2 – Investment Types and Terminology

3 – Yield Curve and Credit Risk Premium

4 – Interest Rate Risk