Settlement Date
The date when bond ownership transfers and payment is exchanged — typically T+1 or T+2 after trade date.
Settlement date is when the buyer pays cash and receives the bond. In U.S. Treasury markets, settlement is T+1 (one business day after trade). For corporate bonds, it's typically T+2. Settlement date matters for accrued interest: the buyer pays accrued from the last coupon date up to (but not including) settlement. If you buy a bond mid-coupon period, you compensate the seller for interest earned but not yet paid. Think of it as closing day for bonds: the trade date is when you agree to the price, but settlement is when money and securities actually change hands. Delayed settlement allows time for clearance, confirmation, and fund transfers.
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.
Accrued Interest
Interest that has accumulated since the last coupon payment, paid by the buyer to the seller.