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Accrued interest. The interest earned on a bond since the last interest payment was made. All-in cost. Total cost, including the interest rate on the debenture, discount, commissions, reserve fees, and issuing expenses. Bankers acceptance. A short-term credit investment created by a non-financial firm and guaranteed by a bank. BAs are very similar to T-bills. Basis point. In the bond market, the smallest measure used for quoting yields; one basis point is 0.01 per cent (1/100 of 1 per cent). Basis points also are used for interest rates; an interest rate of 5 per cent is 50 basis points higher than an interest rate of 4.5 per cent. Blended payments. Total principal and interest payments remain the same over the term of the loan, however the principal portion of the payment increases and the interest portion decreases. Debenture. A debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. Discount. The amount by which selling price of a debenture is below its par value. A bond that is sold at 99.50 has a discount of 50 basis points. Gross proceeds. The amount received after all costs and fees have been paid. If a municipal unit requests $100,000 in gross borrowing, proceeds would be $100,000 less fees and charges. Maturity date. The date on which a debt becomes due for payment. Net proceeds. The amount the municipal unit receives equals the amount required for capital financing. If a municipal unit wants $100,000 for capital financing, they can request that the proceeds equal $100,000. The unit will borrow $100,000 plus fees and charges. Serial debenture. A set of debentures issued at the same time but having different maturity dates. Spread. The price an issuer pays above a benchmark fixed income yield to borrow money. Spread is affected by market conditions, credit rating of the issuer, and term to maturity. Yield. The annual rate of return on an investment, expressed as a percentage. Yield to maturity. The rate of return if a bond is bought at its current market price and held until maturity. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price.
Source: A number of these definitions have been taken from the MoneyGlossary.com Financial Glossary . and the American Stock Exchange Dictionary of Financial Risk Management. 
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