Sentences with phrase «bond reaches its maturity»

Yield to maturity assumes that all interest payments are received from the date of purchase until the bond reaches maturity, and that each payment is reinvested at the same rate as the original bond.

The bondholder receives the par value of the bond when the bond reaches its maturity date, meaning the specified period of time is up.

At the end of that period, the bond reaches maturity and the full amount of the buyer's original investment, or the principal, is returned.

These bonds aim to protect your capital and give you some return when the bond reaches it maturity date.

When the bond reaches its maturity, the bond owner may opt to reclaim his principal or reinvest.

As each bond reaches maturity, the trust holder receives payments until the fund dissolves.

When a bond reaches maturity, you are guaranteed to have the full amount of your investment returned to you.

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.

As your bond reaches maturity it is a different investment.

When an investment such as a bond reaches its maturity date.

At the end of that period, the bond reaches its maturity date, and the full amount of your original investment is returned to you.

Once that period has ended, the bond reached maturity, and the entire amount of your original investment is given back to you.

Ether used to purchase the bond will be deposited to a public address called the Nivaura Client ETH Account, with the investors in - turn confirming the account in which they'd like to receive their principal and interest when the bond reaches maturity on Nov. 29.

Not exact matches

The difference between Treasury bonds and U.S. Treasury notes is simply the amount of time until they reach maturity.

You can redeem the bond for its face value when it reaches maturity or you can sell it before it matures if you're willing to pay penalty fees.

Funds such as Pimco's MINT, which beats the bushes for bonds just outside the reach of money market funds with their 397 - day maturity limit.

In general, it is a better measure than average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage - backed securities and asset - backed securities).

But what if your bonds didn't reach maturity while rates are higher?

Since the BOJ already owns close to half of all outstanding Japanese government bonds of a 10 - year maturity and below, its move was viewed by some market participants as, in effect, a tacit admission the BOJ had reached the limit for QE and possibly the first stage of a taper of its bond purchases.

Along with the senior bonds issued at loan closing, CTRMA issued $ 66 million of low interest BANs, which reached maturity in January 2008.

Because the semiannual inflation adjustments of a TIPS bond are considered taxable income by the IRS, even though investors don't see that money until they sell the bond or it reaches maturity, some investors prefer to get TIPS through a TIPS mutual fund or exchange traded fund (ETF), or to only hold them in tax - deferred retirement accounts to avoid tax complications.

If you buy a bond, you can simply collect the interest payments while waiting for the bond to reach maturity — the date the issuer has agreed to pay back the bond's face value.

It often surprises new investors to learn that even though a bond will repay you $ 1,000 upon reaching its maturity date, the market value of a bond can deviate quite a bit from this amount during its life cycle.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

For buckets two and three, bond exchange traded funds (ETFs), with short - to very - short maturities, have historically achieved better returns than traditional savings accounts and may help you reach your financial goals faster.

Earnings from these bonds are exempt from state and local taxes, and federal taxes can be deferred until the bond is either redeemed or reaches the maturity date.

As a result, a bond fund never reaches maturity.

Treasuries are safe from default, but no bond can fully protect you against rising interest rates unless you hold it until it reaches maturity.

The issuer typically makes regular interest payments, and repays the full investment at the end of a set period of time, at which point the bond typically reaches «maturity» and the investor's principal is returned, plus any accrued interest.

The same goes for bonds and GICs which reach maturity.

If a bond is sold before it reaches maturity, any downgrades or upgrades in the bond's rating can affect the price others are willing to pay for it.

The maturity rate (meaning the time when a bond reaches the value displayed on the front) is 20 years, although it can continue to gain interest for an additional ten years after that.

Though not as liquid as stocks, you can usually release your cash by selling your bond before it reaches maturity.

Once the maturity date is reached, irrespective of the rise or fall in the current bond value, you will be paid your complete principal amount.

In case the interest rates fall too low, the short - term bonds will not suffer much and will reach maturity quicker thus giving you the opportunity to invest in something more profitable.

When you invest in multiple bonds, make sure that the maturity date of each of the bonds that you invest in is reached in the form of a ladder, meaning, one after the other.

However, people who buy bonds with longer maturity period, say of 10 - 15 years, often choose to sell off the bond before reaching the maturity date, simply because the maturity period is too long.

The buy and hold strategy is where investors buy bonds with good investment grade score and good interest rates and hold the bonds until the maturity period is reached.

When governments want to raise money, they do so through a bond auction by issuing bills (typically short - term) and bonds (longer term — maturities can reach 30 years or more).

Bonds with a fixed coupon rate pay the same interest rate until they reach maturity, usually on an annual or semiannual basis.

The second promise is that you will be paid an annual interest for the amount you paid while purchasing the bond until the Maturity Date is reached.

As of 2006, according to CNN, the U.S. Department of the Treasury is sitting on approximately $ 13 billion in savings bonds that have not been redeemed, yet no longer earn interest because they have already reached maturity.

However, if you're patient and you wait for your savings bonds to reach maturity, the eventual savings bond value could finally justify your grandparents» decision make you wait for the money you wanted them to give you 30 years ago.

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Create a «ladder» of bonds or CDs to reach maturity at specific intervals, matching the customer's income needs over time.

If you have a portfolio, divide it up according to how it's invested (stocks, bonds, cash), your existing balance and anticipated amount you expect to spend once they reach maturity.