Sentences with phrase «bond issuers promise»

Bonds are considered less risky than stocks because bond prices have historically been more stable and because bond issuers promise to repay the debt to the bondholders at maturity.

The bond issuers promise to pay you back for the full loan amount, also called par value, face value, maturity value or principal, and usually with regular interest payments on the par value.

In exchange for your principal, a bond issuer promises regular interest payments and the return of your money at maturity.

Not exact matches

With the Fed actively buying securities on the open market, the additional demand means bond issuers can promise lower yields and still attract investment.

«The same thing holds with bonds — so you have to look at the credit rating of the issuer, [which can indicate] whether it can keep its promise [to pay you back with interest].»

As a bond investor, you are basically taking a view of where interest rates are going along the yield curve and the issuer's ability to pay the money promised.

So for example, when a commercial bond is issued, the issuer promises to pay $ X per period.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event; generally expressed as an annual percentage of the bond's face value

It refers to a bond issuer's ability to repay its debt as promised when the bond matures.

A bond with a lower credit rating might offer a higher yield, but it also carries a greater risk that the issuer will not be able to keep its promises.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10 % coupon will pay $ 100 per $ 1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed - income search results pages, the term «Step - Up» instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step - Up will reveal the step - up schedule for that security

In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due.

Most bonds pay investors a fixed rate of interest income that is also backed by a promise from the issuer.

That promise is generally kept unless the issuer falls on hard times; some bonds have credit risk based on the financial health of their issuer.

When you invest in bonds, you are essentially lending money to the bond issuer, who promises to pay you interest — called the Coupon — and repay the principal by a set date — when the bond reaches maturity.

Credit rating agencies assess the risks of certain bonds, issuing grades that reflect the issuer's ability to meet the promised principal and interest payments.

The bonds have low credit risk; there's little chance that the issuers would be unable to pay interest or principal as promised.

Bond ratings gauge a bond issuer's financial ability to repay its promised principal and interest paymeBond ratings gauge a bond issuer's financial ability to repay its promised principal and interest paymebond issuer's financial ability to repay its promised principal and interest payments.

The risks: Despite some high - profile municipal bond defaults, such as the 1994 default by California's Orange County, the vast majority of state and local bond issuers repay their debts as promised.

Green bonds are just like other bonds issued by governments and companies, except that the issuer promises to use the funds for «green» projects.

Some municipal bonds are insured by outside agencies, usually a monoline insurer, which promises to pay the interest and principal if the bond's issuer defaults.

Because the fund owns a large number of bonds, if a few issuers of the fund's bonds don't fulfill the bond's promise to pay, you and the other mutual fund shareholders don't lose much.

For most bonds, issuers promise both regular interest payments and the return of principal to bond investors.

The face amount, or par value, of a bond or note that the issuer promises to pay on the maturity date.

Each bond represents a promise by the issuer to pay a certain amount of interest and repay the full amount of the loan on a specific date in the future.

Bond: Evidence of debt in which the issuer promises to pay bondholders a specified amount of interest and to repay the principal at maturity.