Page 141 - The Informed Fed--Hearn Wealth Management

Treasury Bonds: Treasury Bonds are issued with maturities of more
than 10 years and are offered and guaranteed by the U.S. Government.

They are issued at a discount and pay their full-face value at maturity.

Treasury Notes: Treasury notes are issued with maturities between one

and 10 years. These notes are offered and guaranteed by the U.S.
government. They are issued at a discount and pay their full-face value

at maturity.

Underwriter (banking): A person, banker or group that guarantees to

furnish a definite sum of money by a definite date in return for an issue
of bonds or stock.

Underwriter (insurance): The one assuming a risk in return for the
payment of a premium, or the person who assesses the risk and
establishes premium rates.

Underwriter (investments): In the bond/stock market this term means

a brokerage firm or group of firms that has promised to buy a new issue
of bonds/shares from a government or company at a fixed discounted
price, than arranges to resell them to investors at full price.

Unemployment Rate: The number of people unemployed measured as

a percentage of the labor force.

Universal Life Insurance: An adjustable universal life insurance policy
provides both a death benefit and an investment component called a

cash value. The cash value earns interest at rates dictated by the insurer.
The policyholder may accumulate significant cash value over the years

paying taxes on the borrowed gains (taxes may be required if policy is
surrendered). As long as the policy stays in force the borrowed funds do

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