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Tax-Equivalent Yield
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Pretax yield that a taxable bond would have
to pay to equal the tax-free yield of a municipal bond in an investor's tax
bracket.
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Tax Exempt
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Free from tax.
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Time Value
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The amount (in options trading) an investor
is willing to pay above an option's intrinsic value in order to buy and
hold that option for the time remaining until the option expires.
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Trade Date
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Day on which a security or a commodity
future trade actually takes place.
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Traditional IRA
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Personal, tax-deferred retirement account
that an employed person can set up. IRA contributions are deductible regardless
of income if neither the taxpayer nor the taxpayer's spouse is covered by a
qualified plan or trust. If the taxpayer is covered by a QRP, they may
deduct contributions if MAGI is below $50,000 on a joint return or $30,000
on a single return.
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Treasury Bills
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Short-term securities with maturities of one
year or less issued at a discount from face value.
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Treasury Bonds
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Long-term debt instruments with maturities
of 10 years or longer issued in minimum denominations of $1,000.
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Treasury Inflation Protection Securities
(TIPS)
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Bonds issued by the U.S. Treasury that hedge
the purchaser against the impact of inflation by semi-annually increasing
the par value of the issue by the amount of inflation. These securities
represent a real, inflation-adjusted yield. Because of this the coupon on
TIPS is significantly lower than a non-TIP security.
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Treasury Notes
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Intermediate securities with maturities of 1
to 10 years. Denominations range from $1,000 to 1 million or more. The notes
are sold by cash subscription, in exchange for outstanding or maturing
government issues, or at auction.
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Treasury Strips
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STRIP stands for Separate Trading of
Registered Interest and Principal of Securities. Strips are a pre-stripped
zero coupon bond that is a direct obligation of the U.S. Treasury.
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