Sentences with phrase «bond at a face value»

Try to buy bonds at face value of $ 100 (PAR) or less.

These bonds are bought by investors on the open market for less than their face value, and the company uses the cash it raises for whatever purpose it wants, before paying off the bondholders at term's end (usually by paying each bond at face value using money from a new package of bonds, in effect «rolling over» the debt to the next cycle, similar to you carrying a balance on your credit card).

The special - issue funds are different then normal US treasuries in that the SSTF can redeem special - issue bonds at face value at any time (even before maturity).

Not exact matches

Its bonds were trading at just over half face value.

Remington also has $ 250 million of bonds that come due in 2020, and are trading at a significant discount to their face value at 22 cents on the dollar, according to Thomson Reuters data, indicating investor concerns about repayment.

Banks receive government bonds or central bank deposits in exchange for their bad debts, accepted at face value rather than at «mark - to - market» prices.

Money managers at Goldman Sachs bought $ 2.8 billion face value of Petroleos de Venezuela bonds at a deep discount last week, attracting the ire of critics of President Nicolás Maduro.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

These securities are known as Original Issue Discount (OID) bonds, since the difference between the discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.

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.

Zero - coupon Zero - coupon corporate bonds are issued at a discount from face value (par), with the full value, including imputed interest, paid at maturity.

the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single - priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one - month (30 day), three - month (90 day), and six - month (180 day) maturities are auctioned weekly; treasury notes with two - and five - year maturities are auctioned monthly; Notes with three - year maturities are auctioned in February, May, August, and November; treasury bonds with 10 - year maturities are auctioned in February, May, August, and November.

When you hold a bond you get paid a coupon and hopefully receive your face value at maturity.

McDonald's issues $ 50 million in bonds with a maturity of 30 years The bonds have a face value (cost) of $ 1,000 and an interest rate of 3.5 % McDonald's pays investors 1.75 % in interest, twice a year for 30 years At the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hoAt the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hoat $ 1,000 for each bond they hold

As with the EMBI +, the EMBI Global includes U.S. dollar - denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $ 500 million.

If the bond included a «call provision,» the issuer can redeem it early, too — in order to issue new bonds at a lower interest rate, for example — but usually pays you a little more than the face value to do so.

When a bond is selling at a premium, its current price is higher than its face value.

Bonds issued by offshore unit HNA Group International were bid at 96.5 percent of face value, Eikon data showed on Jan. 12.

No interest is paid, but at maturity you receive the face value of the bond.

Therefore, bonds fluctuate in price, selling at a premium (above) or discount (below) to its face value (par value).

When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($ 100,000) or multiples thereof

Say you buy a bond that currently costs $ 950, and matures in one year, at $ 1000 face value.

Now there's a trade - off: the buyer of your old bond will receive more interest, but at maturity he'll collect only the face value of $ 1,000 and suffer a capital loss of almost $ 36.

At a pre-specified date, you will get the face («par») value of the bond back, typically $ 1,000 per bond.

Overall, the bond's total return will work out to 3 % annually — exactly the same as if he'd bought a new bond at current rates and paid face value.

To expand on @DilipSarwate's comment regarding your first bullet point, if the original face value for the bond is $ 1000, it has a maturity of five years and a coupon rate of 10 %, then each of those five years you will receive $ 100 (10 % of $ 1000) and at the end of the five years you will receive $ 1000 back, for a total outlay of $ 1000 and a total income of $ 1500, netting you $ 500.

If a bond has a face value of $ 100, pays 1 % and matures in 20 years» time then you expect to receive a total of $ 120 from buying it now — $ 1 per year for 20 years and $ 100 at the end.

So if you can purchase a bond at $ 80 which has a face value of $ 100 why would I not sell everything I own and put all that money into buying this bond?

That's because virtually all the bonds in a broad - based ETF today were purchased at a premium — in other words, for more than face value.

The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time.

The reason is that virtually all bonds now trade at a premium: they were issued when interest rates were higher, so they're priced above face value.

For example, at discount brokerage Qtrade, when you buy a Canadian bond with a face value under $ 25,000 you'll pay $ 24.99.

For example, if a five - year strip bond with a face value of $ 10,000 is purchased for $ 9,057, it has a yield of 2 % — because $ 9,057 invested for five years at 2 % and compounded semi-annually would grow to exactly $ 10,000.

So when choosing to buy a bond, you look at the money you're going to get, both over the short term (the coupon rate) and the long term (the face value), and you consider whether $ 80 now is worth $ 100 in 20 years, plus $ 2 per year.

With safe bonds you do not have to worry about market fluctuations because your bonds will come due at face value at maturity.No one seems to place much value on not loosing money.

Series EE savings bonds are different in that they are issued at a deep discount from face value and pay no annual interest because it accumulates within the bond itself, and the interest is paid out when the bond matures.

For example, if a bond is selling at 95, it means that the bond may be purchased for 95 % of its face value; a $ 10,000 bond, therefore, would cost the investor $ 9,500.

When the price of a bond increases above its face value, it is said to be selling at a premium.

Because a bond will always pay its full face value at maturity (assuming no credit events occur), zero - coupon bonds will steadily rise in price as the maturity date approaches.

At maturity date, the full face value of the bond is repaid to the bondholder.

Newly issued bonds normally sell at or close to their face value.

These bonds don't make periodic interest payments and will only make one payment (the face value) to the holder at maturity.

Zero coupon bonds are sold at a steep discount from the face value amount that is returned at maturity.

When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.

A zero coupon bond, on the other hand, is sold at a discount from its face value and the issuer makes no interest payments during the life of the security.

A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of a deceased bondholder to put (sell) the bond back to the issuer at face value in the event of the bondholder's death or legal incapacitation.

Bonds are not necessarily issued at par (100 % of face value, corresponding to a price of 100), but bond prices will move towards par as they approach maturity (if the market expects the maturity payment to be made in full and on time) as this is the price the issuer will pay to redeem the bond.

The term refers to the face value of the bond, that is, the value at which the issuer will redeem the bond at maturity (assuming it does not default).

Treasury sells Series EE bonds for one - half of face value and Series I bonds at full face value.