- Certificate of Annuity
Certificate of Annuity (COA) - is a financial instrument/security issued by government agencies which guarantee the initial interest rate for funds on deposit for the entire length of the maturity of the security. Typical maturity/tenor for these deposit instruments are 1,3,5,10 or 15 years. The main features of COA are liquidity, preserves principal, and stipulates a fixed rate of return.
Following are the two options available for policy holder at maturity:
(i) withdraw the funds without having to pay a surrender charge (it is important to note that taxes must be paid on the interest earned and there is a 10% penalty on the earnings if the policyholder is less than age 59½);
(ii) roll the funds over into another annuity for a limited number of years or a product of longer duration. In contrast to certificates of deposit (CDs), interest earned through this annuity accumulates on a tax-deferred basis.
Bond market Bond · Debenture · Fixed income Types of bonds by issuer Types of bonds by payoutAccrual bond · Auction rate security · Callable bond · Commercial paper · Convertible bond · Exchangeable bond · Extendible bond · Fixed rate bond · Floating rate note · High-yield debt · Inflation-indexed bond · Inverse floating rate note · Perpetual bond · Puttable bond · Reverse convertible · Zero-coupon bond Bond valuation Securitized products Bond options Institutions
Wikimedia Foundation. 2010.
Look at other dictionaries:
Certificate of life — A 1939 Certificate of Life from the British Embassy in Paris. The fee has been paid through the application of revenue stamps. A Certificate of Life (also called a Proof of Life, Certificate of Existence or Letter of Existence) is a certificate… … Wikipedia
annuity — Synonyms and related words: accident insurance, actuary, aid, alimony, allotment, allowance, assistance, assurance, aviation insurance, bail bond, bond, bounty, business life insurance, casualty insurance, certificate of insurance, court bond,… … Moby Thesaurus
group annuity — A contract providing annuities for the members of a defined group of persons, usually the employees of a business or industry, or of such part of them as desire to participate and are eligible under the arrangement or plan provided, the… … Ballentine's law dictionary
insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… … Universalium
McDonald's Monopoly — The McDonald s Monopoly game is a sweepstakes advertising promotion of McDonald s and Hasbro, which uses the theme of the latter s board game Monopoly. The promotion has been offered in the United States, Canada, Germany, Hong Kong, United… … Wikipedia
trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… … Black's law dictionary
List of Acts of Parliament of the United Kingdom Parliament, 1860-1879 — This is an incomplete list of Acts of the Parliament of the United Kingdom for the years 1860 1879. For acts passed prior to 1707 see List of Acts of Parliament of the English Parliament and List of Acts of Parliament of the Scottish… … Wikipedia
bond — Synonyms and related words: Fannie Mae, Federal Agency bond, Ginnie Mae, Oregon boat, Series E bond, Series H bond, accident insurance, accord, accouple, accumulate, actuary, addition, adherence, adhesion, adhesive, adjunct, adjustment bond,… … Moby Thesaurus
Life insurance — The foundation of life insurance is the recognition of the value of a human life and the possibility of indemnification for the loss of that value. F. C. Oviatt, Economic place of insurance and its relation to society Life insurance is a… … Wikipedia
insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… … Black's law dictionary