Sentences with phrase «held to maturity means»

Held to maturity means the value of the bonds amortizes over time, but price moves don't affect the accounting, unless default is likely.

The option of holding to maturity means you will have to wait longer than most can wait, and most institutional investors don't even have an average 10 - year holding period.

Not exact matches

I'm actively looking at my debt and determining if it makes more sense to pay down mortgages (locking in a guaranteed ~ 4 % return) or investing in bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).

What it means: This yield measure represents the weighted average YTM of the bonds in the fund as of a date, assuming that the bonds will be held to maturity and that all coupon payments and the final principal payment will be made on schedule.

The yield at that time was about 1.6 %, meaning if you held the bond to maturity that would be your annualized return.

The adjustment is meant to disincentivize surrenders in a rising - rate environment, but has no impact on the contract if held until maturity.

These securities are meant to be held until maturity, removing the burden of complex pricing that sometimes plagues bonds.

This proved to be true, but it meant that those that held the securities to maturity had to endure a time when the offered prices for the securities were far less than par, though all paid their principal and interest to maturity.