Sentences with phrase «bond increases»

When interest rates fall, existing bonds increase in value.
Market risk Price volatility of corporate bonds increases with the length of the maturity and decreases as the size of the coupon increases.
And that's why, when demand for bonds increases and bond prices go up, interest rates go down.
That is, its price can fall because the discount rate we apply to those payments has increased, as it does when the rates on competing bonds increases.
That's why many people recommend that your investment in bonds increases as a percentage of the total as you get older.
A capital gain occurs when an asset such as a stock or bond increases in value, making it worth more than what the holder initially paid for it.
Municipal Bonds — Municipal yields were mixed this week, with the 2 - year AAA - rated bonds increasing by 5 bps to yield 1.73 %.
Municipal Bonds — Municipal yields were also up this week, with the 2 - year AAA - rated bonds increasing by 5 bps to yield 1.81 %.
The price of the 30 - year Treasury bond increased 15/32, lowering its yield to 3.123 %
Reflexively, these worries are causing them to come to true — as pessimism increases, yields on Spanish bonds increase, and Spain will have to pay higher rates on new debt issued.
At 170,000 atmospheres (17 GPa), the hydrogen bonding increased between neighboring H2S molecules.
TIPS provide protection from inflation because the principal of a TIPS bond increases with inflation and decreases with deflation, as measured by the Consumer Price Index.
As inflation was tamed and interest rates descended from an eye - popping 15.8 % in 1981, the value of high - yielding investment - grade bonds increased dramatically.
Sometimes, the yield curve steepens — the gap between rates on short - term and long - term bonds increases.
Savings bonds increase the initial investment with an interest rate that is guaranteed by the federal government.
«It's a mutually beneficial relationship, too — the knowledge that a human - animal bond increases their own health and wellness motivates pet parents to take better care of their pets.
Here, high pressure studies show that force constants of iron bonds increase with pressure similarly for silicate and metals suggesting interplanetary isotopic variability is not due to core formation.
The 2 - year AAA - rated bonds increased 3 bps to yield 0.87 %.
Supporting mother - infant bonding increases the duration of breastfeeding in mothers with newborns in the neonatal intensive care unit
By contrast, when inflation is higher and more volatile — as it was in the 1970s — the correlation between stocks and bonds increases.
If market interest rates fall to 7 %, the price of your bond increases to $ 1142 ($ 80 / $ 1142 = 7.0 %).
Meanwhile the adjusted cost base of the bond increases each year by the amount of this notional interest, until it reaches $ 10,000 at maturity:
When the price of a bond increases above its face value, it is said to be selling at a premium.
When interest rates rise, the price of existing bonds decreases, and when interest rates drop, the price of these bonds increases.
As the interest rate on a bond increases, the value of the underlying bond falls in value.
Meanwhile, I bonds increase in value along with inflation, plus holders can sometimes earn a small additional sum.
The 10 - year AAA - rated bonds increased 9 bps, while the 30 - year AAA - rated bond gained 8 bps and yields 2.79 %.
Selling at a gain — that is, the price of the bond increased over the period it was held — effectively increases the yield obtained from the investment.
Alternatively, if interest rates go down, the current value of your bond increases on the open market to make it appear as if it is yielding a lower rate.
I had some bonds paying a higher coupon than my mortgage but rates have come way down since then so the value of the bonds increased.
During a stock market crash, stocks plummet in value... but bonds increase, because investors start to seek safe returns again.
Assuming there is no doubt about the creditworthiness of the issuer, one should be willing to pay $ 94.48 for the bond increasing its payment at 3.4 % per year, accepting an initial current yield of 1.06 %.
During this period, the bond increases in value and becomes worth at least its face amount.
Also, savings bonds have an «original maturity» period during which the bond increases in value and becomes worth at least its face amount and an «extended maturity period» during which it continues to earn interest.
Such a bond increases the chances the child will make it to adulthood since human infants and children can't fend for themselves, unlike many other mammals.
The report concluded that the industry was still too small to pose a risk to overall financial stability, but that could change if demand for the bonds increases.
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