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Results for "conventional"

Conventional

Definition: A conventional gilt-edged security, a kind of bond paying the holder a fixed cash payment (or coupon) every six months until maturity, at which point the holder receives the final payment and the return of the principal.


Alright class, settle down now, let’s take a look today – At a word that's quite important, in finance’s steady sway. We’re talking about “conventional,” you see, it’s more than just a name, It describes a security, playing a familiar game! The dictionary gives us the gist, a lovely little line, "A gilt-edged security," so perfectly fine. Think of it like this: A bond is born, you understand? Paying out cash regularly, across this financial land. “Fixed cash payment,” that’s the coupon's plea, Six months it comes to you, consistently! Then at maturity, a final treat, The principal returns, oh so sweet! "Conventional," then, means it follows the norm, A standard way of doing things, weathering the storm. It’s not quirky or unusual, it fits in with the rest, Like a comfortable shoe, putting your money to the test! Does anyone have questions? Don't be shy, let's discuss, Understanding these terms is crucial, just like any plus!