Sentences with phrase «bond at current rates»

Every year, one - fifth of the ladder matures, and you can use that money to purchase a new five - year GIC or bond at current rates.

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.

Not exact matches

The average BB rated bond, which is what Dell's current debt is rated, is trading at a yield of 5.8 %.

With capital gains taxes, your earnings are taxed at either the current capital gains tax rate or your ordinary income rate, depending on how long you hold the bond.

Long bonds will end up being a very volatile investment at some point once rates or inflation rise from current levels, but intermediate - term bonds should continue to dampen stock market volatility.

An allocation to bonds hardly makes up for equity losses at current interest rates.

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.

The ECB has said it intends to continue bond purchases until at least September, to keep interest rates at current levels until «well past» the end of the program.

The graphic below shows current average interest rates paid for different categories of bonds at different maturities.

Conversely, as interest rates fall, prices of outstanding bonds rise until their yield matches that of new bonds issued at the current rate.

This increases the chances that the ECB will keep buying government bonds on a huge scale beyond December 2017 and it increases the likelihood that the ECB will keep its policy rate at their current well beyond 2018.»

At current interest rates, holding a large percent of bond may not make sense.

HOFFMAN ESTATES — To take advantage of current relatively low interest rates, $ 17.7 million in bonds should be sold all at once, a Hoffman Estates Park District panel recommended this week.

Craig Talsma, director of finance and business for the Park District, said making one issue bond for three years at the current interest rates will offer a savings of between $ 40,000 and $ 60,000.

The British sports car maker has secured a # 304 million bond - about $ 440 million at the current rates - from global investors at a rather high 9.25 % interest over the next seven years.

When bond yields change in the market, the YTM on a fund also changes, and future bonds acquired by a fund will then be acquired at current YTM rates.

You'll need to ask yourself if exchanging a lower current interest rate for the chance at higher interest rates in the future is a worthy trade - off for a short - term fixed rate bond or bond fund.

Do you think international bond investors — those same investors that drove Spain and Italy to the brink of needing sovereign bailouts — will continue to roll over Japanese debt at current rates?

But with interest rates at current low levels, stick with T - bills, GICs of government bonds that have terms of, say, two or three years or less.

Bonds are tax - inefficient, as all of your income returns are taxed as current income at your marginal tax rate.

The sooner a bond or GIC matures, the sooner the money can be reinvested at current rates.

A bond is considered a discount bond when it has a lower interest rate than the current market rate and, consequently, is sold at a lower price.

At the time of issue of the bond, the interest rate and other conditions of the bond will have been influenced by a variety of factors, such as current market interest rates, the length of the term and the creditworthiness of the issuer.

Among the factors arguing that we are at a turn in bond yields are the economy's current strength and momentum and the Fed's decision to shrink its balance sheet and move away from quantitative easing as they raise the Fed funds rate.

If you buy long term bonds today (at very low rates) and the interest rate goes up to 10 % in 5 years, the current value of the bonds will decrease.

This bond has a maturity date of 1 year and 4 months and has a current yield rating at 2.4 percent.

They trade in the bond market at prices reflecting current interest rates.

The yield on the two - year bond, as measured by the S&P U.S. Treasury Bond Current 2 - Year Index, remained consistent and actually ended June at 1.37 %, only 1 bp higher than the day after the rate hbond, as measured by the S&P U.S. Treasury Bond Current 2 - Year Index, remained consistent and actually ended June at 1.37 %, only 1 bp higher than the day after the rate hBond Current 2 - Year Index, remained consistent and actually ended June at 1.37 %, only 1 bp higher than the day after the rate hike.

«Investors who rely on bond products to keep them safe and provide a reasonable rate of return could be very disappointed for many years,» explains Miles Clyne, a portfolio manager with the Tycuda Group at MacDougall Investment Counsel Inc. in Langley, B.C. Current low interest rates and the impact of rising rates in the future, are «foretelling a not - so - pretty picture.»

Yield to maturity is a bond's expected internal rate of return, assuming it will be held to maturity, that is, the discount rate which equates all remaining cash flows to the investor (all remaining coupons and repayment of the par value at maturity) with the current market price.

The current bond price may decline when rates rise, but the investor will receive his or her original investment back at the defined maturity date of the bond.

Besides, while bonds certainly seem risky in that at their current low yields they're especially vulnerable to rising rates, viewed from another angle they may be a lot more valuable than many investors realize.

For longer dated bonds, like many ILBs, the many years of interest can be as or more important than the principal remaining even at low current rates.

And we're seeing portfolios that have bonds that are trading at premiums, that have higher coupons, that have 20 -, 25 -, 30 - year maturities, but the duration calculation is based on the current interest rate and those bonds coming due in the next two years or three years because of call provisions, etc..

The firm said the bond's successful issuance was vital to the insurer to boost its capital and maintain its current credit rating, which had been at risk of downgrade.

On the one hand, our genes will bond parents together long enough to raise successful offspring at the historical rate of 2 - 4 years, but the current requirement of 25 + years is far greater.