Glossary

Accrued interest is the amount of interest that has accumulated on a loan, bond, or other financial instrument since the last payment date but has not yet been paid or received. It is calculated based on the principal balance, the interest rate, and the time elapsed, and is recognized in financial statements under accrual accounting.

Actual/364 is a day-count convention that calculates interest by dividing the actual number of days in the period by a year of 364 days, exactly 52 weeks.

Actual/365F (Actual/365 Fixed) is a day count convention that calculates interest by dividing the actual number of days in a period by a fixed 365-day year, even when the period includes February 29.

Actual/365L (Actual/365 Leap year) is a day count convention that divides the actual number of days in an interest period by 366 when the period involves a leap year, and by 365 otherwise.

Actual/366 is a day count convention that calculates interest by dividing the actual number of days elapsed in a period by a 366-day year.

An American option is a type of option contract that gives the holder the right, but not the obligation, to buy or sell the underlying asset at the strike price at any time before or on the expiration date. Unlike a European option, which can only be exercised at expiry, an American option offers more flexibility and is commonly used in exchange-traded options on individual stocks and ETFs.

Amortized bond is a bond in which the principal is repaid gradually over the bond’s life, together with interest, rather than in one lump sum at maturity.

An annual report is a company's comprehensive yearly account of its business, audited financial statements, and risks, published for investors and regulators.

Asset-backed commercial paper (ABCP) is short-term debt issued by a conduit or special-purpose vehicle (SPV) and backed by a pool of underlying assets, such as credit-card receivables, auto loans, or trade invoices, rather than by the general creditworthiness of a single corporate issuer.