Zero-Coupon Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically a corporation or government. The borrower agrees to pay periodic interest and return the principal at maturity.

An agency's assessment of a borrower's ability to repay debt, ranging from investment grade to speculative.

Debt rated below investment grade that pays higher interest to compensate for greater default risk.

A colloquial name for speculative-grade corporate debt with elevated yield and elevated default risk.

Debt issued by state or local governments, often paying interest exempt from federal income tax.

Long-dated debt issued by the US government, widely treated as the benchmark risk-free asset.