Sentences with phrase «bonds at maturity»

Corporate bonds are assessed based on the probability a company will be able to redeem (pay off) the bonds at maturity.

Note that this only works if the issuer remains healthy enough to pay off the bonds at maturity and you don't need the cash sooner than whenever your bond matures.

If the average annual rate of inflation over the next 10 years is 4 %, then the real value of those bonds at maturity is only $ 6,755,641.69.

The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time.

When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.

The term refers to the face value of the bond, that is, the value at which the issuer will redeem the bond at maturity (assuming it does not default).

+ read full definition on a bond at maturity.

Unlike a conventional bond, whose issuer makes regular fixed interest payments and repays the face value of the bond at maturity, an inflation - indexed bond provides principal and interest payments that are adjusted over time to reflect a rise (inflation) or a drop (deflation) in the general price level for goods and services.

Any bond issued by a corporation or government that has a maturity greater than 12 months can be considered a balloon - type long - term liability since the amount that must be paid to retire the bond at maturity is substantially more than the interim interest payments.

With corporate / municipal bonds you normally get interest paid to you as income, and the coupon value of the bond at maturity (unless you sell it sooner — for less or more).

These types of bonds don't pay regular interest but are bought at a discount, as in the case of a Treasury bill, and they pay off the face value of the bond at maturity.

The yield on a bond calculated by dividing the value of all the interest payments that will be paid until the maturity date, plus interest on interest, by the principal amount received at the maturity date, taking in to consideration whatever gain or loss is realized from the bond at the maturity date.

The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as...

Not exact matches

In March 2018, SES secured an eight - year EUR 500 million Euro Bond at a low annual coupon of 1.625 % which allows SES to refinance an upcoming debt maturity at more favourable terms.

the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $ 1,000 for a corporate bond

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

Unlike mutual funds, individual bonds mature at par letting the investor know exactly what they will earn if the bond is held to maturity.

It's just a form of mental accounting to assume that you'll be able to ignore short - term losses in individual bonds with the knowledge that the principle value will be there at maturity.

Yes, you have a maturity date with an individual bond, but this ignores the opportunity cost of investing at higher future rates in the meantime.

Careful portfolio management, he said, would allow the central bank to absorb the losses over time by trying to hold bonds to maturity rather than selling at a loss.

That means looking at the fund's objective, average maturity, credit quality, yield and the composition of the holdings by bond type.

The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.

Each issuer must have at least $ 1B outstanding and bonds need at least 2 years remaining to maturity.

If you purchase an individual bond with a five year maturity you will receive interest payments for the term of the bond along with total principal repayment at maturity.

Holding individual bonds is often looked at as being superior to bond funds because you can simply hold an individual bond until maturity.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

The fund under normal circumstances invests in at least 65 % of its total assets in a diversified portfolio of fixed income instruments of varying maturities, including bonds issued by both U.S. and non-U.S. public - or private - sector entities.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date.

At that time, the 10 - year Treasury bond had a duration of just 6 years (due to the very high coupon payments and yield - to - maturity available), while the S&P 500 had an extraordinarily low duration of just 16 years.

I'm actively looking at my debt and determining if it makes more sense to pay down mortgages (locking in a guaranteed ~ 4 % return) or investing in bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).

These securities are known as Original Issue Discount (OID) bonds, since the difference between the discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.

I would be interested if you could compare your 60/40 mix to a 60/40 mix using 5 - year bonds that are laddered so that they can be held to maturity and used when needed as they mature, and therefore never need to be sold at a loss.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.

On 15SEP2016 I bought two of the 4.750 coupon 1MAY2021 maturity Rent A Center (RCII) bonds at 85 cents on the dollar.

Entities in smaller markets typically issue foreign currency debt in offshore bond markets because they can issue larger, lower - rated and / or longer - maturity bonds than they can (at least at comparable prices) in their domestic market.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

Zero - coupon Zero - coupon corporate bonds are issued at a discount from face value (par), with the full value, including imputed interest, paid at maturity.

Call risk Many corporate bonds may have call provisions, which means they can be redeemed or paid off at the issuer's discretion prior to maturity.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

It occurred rather because in 2015 there was a series of debt transactions (mainly provincial bond swaps aimed at reducing debt - servicing costs and extending maturities) that extinguished debt that had been included in the TSF category and replaced it with debt not included in TSF.

High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.

the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single - priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one - month (30 day), three - month (90 day), and six - month (180 day) maturities are auctioned weekly; treasury notes with two - and five - year maturities are auctioned monthly; Notes with three - year maturities are auctioned in February, May, August, and November; treasury bonds with 10 - year maturities are auctioned in February, May, August, and November.

This makes bonds a relatively heterogeneous asset class in which many securities are thinly traded.3 At the same time, institutional investors often hold assets to maturity and, when they do trade, do so in large amounts.

Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.

the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID

When you hold a bond you get paid a coupon and hopefully receive your face value at maturity.

Buy several bonds that invest at different maturities.