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  2. Brokered CDs: What they are and how to buy them - AOL

    www.aol.com/finance/brokered-cds-buy-them...

    Callable vs. noncallable CDs Unlike with a non-callable CD, the issuer of a callable CD can call (or pay back) the CD before its maturity date. If it does, the issuer pays the CD holder a set ...

  3. Certificate of deposit - Wikipedia

    en.wikipedia.org/wiki/Certificate_of_deposit

    This transfer of risk allows step-up callable CDs to offer a higher interest rate than currently available from non-callable CDs. If prevailing interest rates decline, the issuer will call the CD and re-issue debt at a lower interest rate. If the CD is called before maturity, the investor is faced with reinvestment risk. If prevailing interest ...

  4. What is a brokered CD? How they work — and what to know ...

    www.aol.com/finance/what-is-brokered-cd...

    Some CDs are “callable.” With brokered CDs, a bank may “call” — or terminate — the CD before it matures, giving you back your initial deposit and any interest earned before closing the ...

  5. How do certificates of deposit work? Understanding CDs ... - AOL

    www.aol.com/finance/how-do-cds-work-220139365.html

    Choose a different CD. You can use your funds to open a new CD account with a different term. A new CD can help you take advantage of higher interest rates on longer-term CDs or a shorter term if ...

  6. What Is a CD (Certificate of Deposit)? - AOL

    www.aol.com/cd-certificate-deposit-020004620.html

    Callable CD: In return for a higher interest rate, allows the bank to redeem the CD before maturity, pay the principal and interest to you and close the account. High-yield CD: ...

  7. Z-spread - Wikipedia

    en.wikipedia.org/wiki/Z-spread

    The Z-spread is widely used as the "cash" benchmark for calculating the CDS basis. The CDS basis is commonly the CDS fee minus the Z-spread for a fixed-rate cash bond of the same issuer and maturity. For instance, if a corporation's 10-year CDS is trading at 200 bp and the Z-spread for the corporation's 10-year cash bond is 287 bp, then its 10 ...

  8. What is a CD (certificate of deposit)? - AOL

    www.aol.com/finance/cd-certificate-deposit...

    Risk: Some CDs, such as callable CDs, are riskier than other types. Early withdrawal penalties also pose a risk. Taxes: You’ll pay taxes on interest that accumulates in your CD during the term.

  9. Zero-coupon bond - Wikipedia

    en.wikipedia.org/wiki/Zero-coupon_bond

    Zero coupon bonds have a duration equal to the bond's time to maturity, which makes them sensitive to any changes in the interest rates. Investment banks or dealers may separate coupons from the principal of coupon bonds, which is known as the residue, so that different investors may receive the principal and each of the coupon payments.

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