Sentences with phrase «additional bond premium»
The additional bond premium eventually brings down the effective yield to the market prevailing rate.
https://www.investopedia.com/ Not exact matches
If the issuer in fact chooses to redeem the bond at such time, the additional $ 300 paid by the issuer to the holder is considered a «premium» and will produce a $ 300 long - term capital gain to the holder.
Before buying this type of product, we urge clients to also evaluate other ways they could invest the additional premium cost, such as equities, bonds, etc..
@Malcolm: When you buy an individual bond that is trading at a premium to its par value (or a basket of premium bonds in a mutual or ETF structure), you will receive additional interest to compensate you for the capital loss realized when the bond matures at its lower par value.
If the replacement bond is going to be a Treasury, choose the off - the - run rather than the on - the - run so that you're not paying for liquidity premium, which is additional richness priced into the on - the - runs due to the demand by the repo markets.
Variable Universal Life offers the benefits of Universal Life with an additional opportunity to grow your cash value through the allocation of premiums to variable portfolios that invest in stocks, bonds and other instruments.