Sentences with phrase «bond below face value»

Not exact matches

The increase in return results from buying the bond below its stated face value.

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

For example, if a long - term bond paid 10 % of its face value and interest rates went down to 5 %, you'd have to pay $ 2000 for a bond with a face value of $ 1000 (oversimplified, see below).

In your case, because your bond matures in 56 years but yields ~ 5 % (well above the current market rate), for it to be below Face value implies a strong probability of default, or a strong belief that market returns will be above 5 % over the next 56 years.

the amount below the stated «face» or par value when a fixed - income security (e.g. a bond) is bought or sold; for example, if a bond's face value is $ 1,000 and it sells for $ 900, it was sold at a discount

0 % bonds are usually sold well below par value (eg a 100 $ face value bond for 2020 might sell for 90 $ today) Hence, your gains will be CAPITAL GAINS.

The Barclays Capital High Yield Very Liquid Index includes publicly issued U.S. dollar denominated, non-investment grade, fixed - rate, taxable corporate bonds that have a remaining maturity of at least one year, regardless of optionality, are rated high - yield (Ba1 / BB + / BB + or below) using the middle rating of Moody's, S&P, and Fitch, respectively (before July 1, 2005, the lower of Moody's and S&P was used), and have $ 600 million or more of outstanding face value.

Bonds sell at a value either at a premium, higher than their face value, or at a discount, below their face value.

The Index includes publicly issued U.S. dollar denominated, non-investment grade, fixed - rate, taxable corporate bonds that have a remaining maturity of at least one year, but not more than fifteen years, regardless of optionality; are rated high - yield (Ba1 / BB + / BB + or below) using the middle rating of Moody's Investors Service, Inc., Fitch Inc., or Standard & Poor's Financial Services, LLC, respectively; and have $ 500 million or more of outstanding face value.