Yield Curve: A graphic line chart that shows interest rates at a specific point for all securities having equal risk, but different maturity dates. For bonds, it typically compares the 2 or 5 year treasury with the 30 year.
Warrant: A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price. This "warrant'' is then traded as a security, the price of which reflects the value of the underlying stock. Warrants are issued by corporations and often used as a ``sweetener'' bundled with another class of security to enhance the marketability of the latter.
Yield: Income or return received from an investment, usually expressed as a percentage of market price, over a designated period. For a mutual fund, yield is interest or dividend before any gain or loss in the price per share.
Zero Coupon Bond: Bond sold at a fraction of its face value. It appreciates gradually, but no periodic interest payments are made. Earnings accumulate until maturity, when the bond is redeemable at full face value. Nonetheless, interest is taxable as it accrues. As a result, zero coupon bonds are often used for IRAs, Keoghs and other tax-deferred retirement plans.