Bond
Level I
Contractual agreement between the issuer and the bondholders.
CFA RESOURCE
CFA Glossary of Terms and Formulas
Use this glossary to search CFA terms, formulas, and finance concepts while you study. Browse alphabetically, search for a specific term, or review short definitions across the CFA Program.
This page is built for candidates preparing for CFA Level I, Level II, or Level III.
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Bond equivalent yield
Level I
A calculation of yield that is annualized using the ratio of 365 to the number of days to maturity. Bond equivalent yield allows for the restatement and comparison of securities with different compounding periods.
Bond indenture
Level I
The governing legal credit agreement, typically incorporated by reference in the prospectus. Also called trust deed. Synonyms: Trust deed
Bond market vigilantes
Level I
Bond market participants who might reduce their demand for long-term bonds, thus pushing up their yields.
An estimate of the cost of common equity that is produced by summing the before-tax cost of debt and a risk premium that captures the additional yield on a company’s stock relative to its bonds. The additional yield is often estimated using...
COMMON QUESTIONS
FAQs About KeyPoint Learning's CFA Glossary
What is a CFA glossary?
A CFA glossary is a reference list of terms, formulas, and finance concepts that appear across the CFA Program. It helps candidates review key ideas while studying for Level I, Level II, or Level III.
CFA Glossary
Does this glossary cover CFA Level I, Level II, and Level III?
This glossary is designed to support candidates across the CFA Program. Where level information is available, terms can be labeled by CFA Level I, Level II, or Level III.
CFA Glossary
Does this glossary include CFA formulas?
Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.
CFA Glossary
Should I memorize every CFA term?
No. It is better to understand important terms in context than to memorize every definition by itself. Focus on how each concept works, where it appears in the curriculum, and how it may be tested.
CFA Glossary
Where can I find more CFA study resources?
You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.
CFA Glossary
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