D

Dated Date
The dated date is the date the bond is issued and starts to accrue interest.

Default
A bond that ceases to pay interest (because the issuer has financial problems) is in default of the terms of the bond agreement, and is said to be in default. Clearly, purchasing a bond in default is an extremely risky investment.

Delivery
Bonds are issued in several different delivery forms. The most popular forms of delivery are Book Entry and Registered. There are also some older bonds in circulation that were issued in bearer form.

Discount Bond
Bonds mature at a par value, which is almost always $1,000. A premium bond is any bond that is currently trading at a price above par. A discount bond is a bond trading at a price lower than par.

E

Escrowed to Maturity (ETM)
Sometimes an issuer desires to pay off a bond in order to remove the debt from its books. However, the bond may not be callable, and the issuer can not redeem the bonds at its discretion. In this case the issuer may deposit sufficient funds with a trustee into an escrow account so that the trustee can use the funds to pay all interest and principal as they come due.

F

First Coupon Date
Bonds typically pay interest twice per year on coupon payment dates. The first coupon date is the date on which the very first interest payment will be made for a bond. It is relevant because bonds often have a longer or shorter than normal first payment period. Once the first coupon payment has been made, the bond will likely pay every 6 months after that.

G

General Obligation Bonds
The interest and principal payments for a municipal bond are typically either guaranteed by the issuer or by the revenue from a specific project. If they are guaranteed by a specific project, the bondholder is relying on revenue from the project to pay principal and interest, and the bonds are known as revenue bonds. If the issuer guarantees the repayment of principal and interest, the bonds are known as a general obligation (often referred to as G.O.) of the issuer.

H