Sentences with phrase «bonds are worth less»

This means that the older bonds are worth less and their market price falls.

A callable bond is worth less to an investor than a noncallable bond because the company issuing the bond has the power to redeem it and deprive the bondholder of the additional interest payments he'd be entitled to if the bond was held to maturity.

Not exact matches

The carrier is putting up future installment payments worth over $ 1.5 billion to back the less than $ 1.2 billion of bonds.

Bond funds fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Yields and market values will fluctuate, and if sold prior to maturity, bonds may be worth more or less than the original investment.

Junk bonds, for instance, are producing a less than pulse - quickening yield of 6 % which, adjusted for defaults (likely to explode during the next recession), isn't worth the risk — save in a few special situations.

We'll assume that $ 1,000,000 worth of bonds costs $ 1,000,000 (it could be slightly more or slightly less), with a rate of 2.70 %.

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

Every team had bench players who would never be seen in the majors again, and to those teams, it was worth having a lesser roster if it meant that Barry Bonds wasn't on their team.

So for example, a $ 1 bond that pays out $ 2 in 1 year would actually be worth less than its purchase price if the inflation of dollars is over 100 % that year.

For better or worse, most of my net worth is equity in our house (lower return but less volatile than stocks — a bond substitute?).

Present value is the discounted sum of all the bond's cash flows and accounts for the time value of money: The longer you wait to receive money, the less it's worth to you today.

If your bond yields 2 % less than market but matures in a year, then it's worth $ 98, but if it matures in 56 years, then it's only worth 0.98 ^ 56 = $ 32.

In fact, it can be worth even less because getting paid on a defaulted bond can often take time and / or money and / or lawyers.

(Investors who apply for bonds worth above Rs 10 Lakh & also NRIs would get 0.25 % less interest rate when compared to the above rates.)

But anytime you sell a bond before its maturity date, it could be worth less than you paid for it if interest rates have gone up since you bought it.

Here's the lesson: anytime you sell a bond before its maturity date, it will either be worth more than you paid for it (because interest rates have gone down since you bought it) or worth less than you paid for it (because interest rates have gone up since you bought it).

The return and principal value of bonds fluctuate with market conditions and when sold, bonds may be worth more or less than their original cost.

If sold prior to maturity, a bond may be worth more or less than its original cost.

Inflation risk Inflation causes tomorrow's dollar to be worth less than today's; in other words, it reduces the purchasing power of a bond investor's future interest payments and principal, collectively known as «cash flows.»

If you decide to sell a long - term bond before it matures, it will probably be worth less than you paid for it if interest rates have risen since you bought it.

The traditional tax swap involves two steps: (1) selling a bond that is worth less than you paid for it and (2) simultaneously purchasing a bond with similar, but not identical, characteristics.

okay here's my two cents worth folks im up for renewal and have just nagotiated a rate 5 yr variable1.75 persent or if i want a five yr fixed at 4.49 still quite a gap between fixed and variable here i believe i have a little lee way here apparently i was only interesed in variable and five yr fixed but i made it absulutly apparent to them that when lock in from a variable i get the whosale discounted rate at that time and written into the contract i kinda believe this the way the market is heading as we head out of ressesion and the bank of canada is going to make there move i believe coming up in june and just to make this firm i do not believe the boc will raise rates in fast mode far from it will be slow process i don't care what the ecconmists are thinking we have to remember manufactering sector is reallt taking a hit on the high dollar and don't forget our niegbours to the south how dependent our canada is with them i believe it will be a slow process a lot of people heve put themselves in a debt load over these enormously low interest rates but i may be wrong i think a variable is the way to go if you want to work on that princibal at least should i say the say the short to medium term and betting that the bond markets stay put for the short to medium term - i have given enough interest to the banks maybe i can pay a little less at least fot the short to mediun term here i have not completly decided yet put i think im going variable although i wish my mtge was up a year ago that would have been just great congradulations to all that did.

If the prevailing rate on five - year bonds is 4 %, a bond like Darryl's with a 3 % coupon must be worth less than face value.

In this case, the discount bond (from above) will be worth less to the buyer, as shown below.

+ read full definition back when your bond matures, but it will be worth less in today's dollars.

In other words, when your bond matures, the return you've earned on your investment will be worth less in today's dollars.

Bonds redeemed prior to maturity could be worth more or less than their original cost.

Investing in the stock and bond markets, even through diversified mutual funds, is risky; investments may be worth more or less than the original cost when sold.

So ILBs that you are stuck with from low rates times will be worth much less than newer bonds at the higher rates, even if you get some of the value back from higher principal amounts.

If interest rates increase, and you're still invested in a bond that pays lower interest, your bond is now worth less.

Bonds redeemed prior to maturity may be worth more or less than their original cost.