Sentences with phrase «amortizable bond premium»

Drummond suggests that no matter how the Americans deal with the debt, it could throw Canada into a double - dip recession: «It could be a lose - lose, because if they deal with it in a draconian fashion, then they'll kill off the recovery, but if they don't deal with it at all, they're going to see lower U.S. growth, drive down the U.S. dollar, raise the bond premiums — and that would be a disaster for Canada.»

the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID

Democrats want to use $ 35 million in bond premiums — essentially money generated by borrowing more than needed at higher interest rates — and cutting police overtime by reopening two closed police precincts and reducing the use of outside counsel.

Lawmakers project $ 30 million in revenue by recovering the value of bond premiums — money generated by borrowing more than needed at higher interest rates.

In the letter, Gonsalves also said NIFA is applying unfair standards by preventing lawmakers from recovering the value of bond premiums — money generated by borrowing more than needed at higher interest rates — and «has perpetuated the conditions that allow it to maintain a control period.»

Lawmakers amended Mangano's $ 2.98 billion budget to remove the tax hike, replacing the revenue through measures to restructure debt and use bond premiums.

Democrats had proposed replacing the fee revenue with tactics including the use of $ 35 million in bond premiums and reducing the use of outside legal counsel.

Amortizable bond premium can also result if a holder purchases a bond that was originally issued at a discount and the purchase price exceeds the issue price of the bond plus any accrued OID on the bond.

In contrast to simpler «yield - curve spread» measurements of bond premium using a fixed cash - flow model (I - spread or Z - spread), the OAS quantifies the yield premium using a probabilistic model that incorporates two types of volatility:

From the link you provided to CBID i can now see my broker charges me something close to 2 basis points on bond purchases, which makes it very difficult to make capital gains when my bonds premium value goes up.

These sheets calculate the (annual) figures for: • Accrued interest that needs to be returned to the seller after settlement • Net bond basis • Original discount or premium • Annual (pro-rated) amortization of bond premium using both Constant Yield and Straight Line amortization, as required by the IRS • End - of - year basis • Annual coupons • Estimates of taxes due on coupons • Estimates of differences in taxes paid vs. not amortizing premiums • Capital loss or gain upon sale before maturity

After that, it is your basis decreased by the amount of bond premium amortized for earlier periods and the amount of any payment previously made on the bond other than a payment of qualified stated interest.

The returning or receiving portions of the bond premium reduce the account balance of the premium on the bond payable for the bond seller or the account balance of the premium on the bond investment for the bond buyer.

The additional bond premium eventually brings down the effective yield to the market prevailing rate.

Bond premium amortization for each coupon payment period illustrates how the actual cash coupon payment effectively pays interest expense and returns a portion of the bond premium for the bond seller or earns interest income and receives a portion of the bond premium for the bond buyer.

A bond premium reduces the yield to maturity of the bond, while a bond discount enhances its yield.

Not exact matches

For Bond & Specialty Insurance, retention, renewal premium change and new business exclude surety.

In Bond & Specialty Insurance, net written premiums increased 6 %, with growth in both the management liability and surety businesses.

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes.

For, with long - term taxable bonds yielding 5 percent and long - term tax - exempt bonds 3 percent, a business operation that could utilize equity capital at 10 percent clearly was worth some premium to investors over the equity capital employed.

This makes sense; lower growth should result in bond yields falling, anticipating lower Bank of Canada rates in the future and less need for a risk premium around inflation.

«Individual bonds, including municipal and corporate bonds, are not as easy to sell on a time - sensitive basis without paying a premium,» Kaplan says.

Treasury yields rise across the board on Wednesday, and the closely watched narrowing of the premium between short - dated and longer - dated bonds took a breather.

I thought that you were treating the equity premium as the premium (if it exists) between equity shares sold by a firm and bonds sold by the same firm.

One possible source of the equity premium (meaning shares are more expensive to issue than bonds) is a central bank as lender of last resort - even in the absence of taxes, bankruptcy, etc..

This has been the case historically, as stocks have earned a 5 - 6 % premium over high quality bonds going back a hundred years or so.

This data goes through year - end 2013, when the risk premiums for stocks over long - term bonds in the most recent 10, 20 and 30 year periods were 1.5 %, 2.4 % and 1.8 %, respectively.

The incredible performance in bonds has transformed the risk premium over this period.

4In fact, one book, Dow 36,000, which was published in 1999 shortly before the stock market peaked, argued that «fair value» for the Dow Jones Industrial Average should be 36,000 because the appropriate risk premium for the equity market versus Treasury bonds should be zero.

Stock prices have plummeted, risks premiums are rising in bond markets, and exchange rates are becoming misaligned.

A quick glance at the graph suggests that the wealth transfer from bond to stock investors has declined over the last 50 years and may now represent a much more modest premium for long - term stock investors.

One is legitimate — every year in which short - term interest rates are expected to be zero instead of say, a typical 4 %, should reasonably warrant a 4 % valuation premium in stocks and bonds, over and above run - of - the - mill historical norms (one can demonstrate this using any discounted cash flow approach).

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

Print the premium bonds, guys!

We believe a step - up in risk aversion has led to a structural rise in precautionary savings, further dragging down bond yields across the curve — a trend that won't quickly change, as we write in our Global macro outlook The safety premium driving low rates.

Industry in a war boom - stock market stagnant - gov» t bonds bringing less than 1 % and selling at a high premium - stocks low and selling at five times earnings.

But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.

«Solid dividend payers like AWK will continue to command a premium in the market as investors are looking for any type of stable yield,» said investment instructor and small - cap stock expert Jason Bond.

(This rate is the difference between the yield on bonds that include an inflation risk premium and those on inflation protected bonds; once you «net out» the latter, what's left over is inflation expectations.)

Make - whole calls Some bonds give the issuer the right to call a bond, but stipulate that redemptions occur at par plus a premium.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.

Well, the banks now, if they're buying a bond of Greece or somewhere else, all of a sudden they have to pay huge risk insurance premiums in order to protect themselves against the fact that Greece may simply say, «Look.

Persistently low official inflation rates in recent years depressed bond yields along with risk premiums on all financial assets.

I've noted that the upward spike in bond yields in recent months was based not on information about an economic recovery, but merely reflected a normalization of maturity risk premiums.

Higher income individuals pay a higher premium based on 2013 AGI plus tax - exempt municipal bond income.

Their objective was to test for a liquidity premium in the $ 14 trillion global corporate bond market.

That large bid / ask spread is equivalent to almost two years of the spread advantage of illiquid (as measured by bid / ask spread) investment - grade bonds, creating a large hurdle for providing a liquidity premium.

The Market Climate remains on a Crash Warning, characterized by extremely unfavorable valuations, unfavorable trend uniformity, and hostile yield trends, particularly long - term bond yields and various measures of risk premiums.

To offset the crippling bank note shortages impacting the country, the Reserve Bank of Zimbabwe has been printing bond notes (Zimbabwe's own version of US Dollars) that are supposed to have equal value to the greenback but are actually trading at a premium of about 30 % to the US dollar on parallel markets.

Put simply, even taking account of current interest rate levels, and even assuming that stocks should be priced to deliver commensurately lower long - term returns, we currently estimate that the S&P 500 is about 2.8 times the level at which equities would provide an appropriate risk premium relative to bonds.