capital gain or loss:
the gain or loss incurred by an investor who sells a financial instrument at a price other than the purchase price; if the selling price is higher (lower) than the purchase price, the investor is said to make a capital gain (loss)
capital gain/loss return rate:
the profit or loss, in percentage, from a change in the price of a financial asset
coupon rate:
the stipulated return, typically on a bond, expressed as a percentage of the principal
current yield:
the yield on a financial asset if it is sold in the current period
discounted bond:
a financial instrument that is sold at a price far below its face value
Fisher equation:
formula that states that the nominal interest rate is the sum of the real interest rate plus an expected inflation rate component
holding period yield:
the return on a financial instrument during the period it is held, which is less than the period to maturity
interest rate:
the price of renting money
internal rate of return (IRR):
the interest rate that equates an initial outlay with the present value of future net cash flows
nominal interest rate:
the total return on a financial asset including compensation for inflation
present value:
the current value of a stream of future payments
real interest rate:
the return or yield on a financial asset excluding compensation for inflation
real return bonds:
Canadian government bonds that specify returns adjusted for inflation; used as a gauge for future inflation developments
volatility:
a measure of the size of changes, for example, changes in the price of bonds
yield to maturity:
the rate of return of a financial asset if it is held until maturity
