Sentences with phrase «bonds the interest payments»

Payable Date: Date on which a declared stock dividend or a bond interest payment is scheduled to be paid.
With most types of bonds the interest payments and the amount you receive at maturity are both fixed over the life of the bond.
Each dividend or bond interest payment that you receive is actual cash that you can use either to buy more stocks and bonds or to pay monthly expenses like housing, gas, groceries or utilities.
Lower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest payments.
the area or activities to which the funds raised from a municipal bond issue will be directed and, in turn, the source of future bond interest payments and principal repayment; for general obligation bonds, funds raised may be for general purposes, both operating and infrastructure, and payments are secured by the general taxing power of the issuer — usually a state, town, or city; revenue bonds are categorized under terms such as «Utilities» or «Transportation»
This is where you use only stock dividends, bond interest payments, and any other account interest when rebalancing the portfolio.
The merits and reasons for re-investing stock dividends and bond interest payments is discussed more in Article 8.8 (coming soon).
For investments in taxable accounts, remember that municipal bond interest payments are exempt from federal income tax, and U.S. Treasury bond interest is exempt from state income tax.
Preferreds have a tax advantage over bonds, as many preferred dividends are qualified to be taxed as capital gains as opposed to bond interest payments, which are taxed as ordinary income.
Also, unlike dividend payments, bond interest payments are a legal obligation.

Not exact matches

For the most part, China, which has owned around $ 1 trillion of U.S. bonds for several years, has held on to these assets, collecting billions in interest payments.
As the Christian Science Monitor noted, that's probably a more realistic concern for China, which holds $ 1.3 trillion in U.S. government bonds, than Washington missing interest or principal payments.
Even a debt - ceiling breach of a week or two during which the U.S. Treasury keeps making principal and interest payments to bond holders might hurt the U.S.'s rating.
Bonds, as measured by the Barclay's Aggregate Bond Index, have risen 5.8 % in 2014, including interest payments.
Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
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
Inflation hurts bond returns because your fixed interest payments aren't worth as much going forward.
Next month, cash payments for the interest on certain bonds are due.
The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.
You get interest payments twice a year and your original investment back at the end of the bond's term.
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.
The only thing that appears is the interest payments on the 50 - year bonds; again not a big deal.
You could potentially lose money in your bond fund depending on interest rate movements around the time you actually need to make your payments.
Investors in Treasury notes (which have shorter - term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment.
The bill would also allow state and local governments to issue Build America Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projBonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projbonds that finance government works projects.
Bonds are also subject to reinvestment risk, which is the risk that principal and / or interest payments from a given investment may be reinvested at a lower interest rate.
Typically they make periodic dividend payments based on the interest paid by the bonds held in the fund.
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
But due to interest payments, the effective maturity of 30 - year bond with a 6 % coupon is closer to just 13 years.
The bonds used as the new collateral will need to generate enough interest to cover all future payments on the loan; otherwise, you may have to pay a penalty.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.
The actual calculation takes the present value of the remaining loan payments and multiplies this number by the difference between the loan's interest rate and the interest rate of comparable U.S. Treasury bonds.
For example, an interest rate swap is a derivative whereby two parties exchange, or «swap,» interest payments on a bond; one side might get a constant 3 percent each payment period, while the other gets the LIBOR rate (a benchmark rate that some banks charge each other for short - term loans).
• 1/2 of self - employment tax (self - employed individuals are required to pay «payroll» taxes that an employer would otherwise take; these extra taxes can be deducted from AGI, but are included in MAGI) • Student loan interest • Tuition and fees deduction • Qualified tuition expenses • Passive income or loss • Rental losses • IRA contributions and taxable Social Security payments • Exclusion for income from U.S. savings bonds • Exclusion for adoption expenses (under 137)
If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.
These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders» principal.
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.
Hovnanian skipped an interest payment due Tuesday on bonds it repurchased and parked with an affiliate, opening the door for GSO to collect payouts on credit - default swaps that insure against nonpayment.
Another view lets Matt review the schedule of when to expect interest payments and the return of principal — providing a view into the cash flow he could expect if he chooses to purchase the suggested bond ladder.
So on the next screen, the tool suggests a bond for each rung of the ladder and shows a summary of the ladder, including the expected yield and annual interest payments.
Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
AGI excludes certain types of income received (e.g., municipal bond interest, most Social Security income) or payments made (e.g., alimony paid, IRA deductions, moving expenses).
Many make periodic dividend payments based on the interest paid by the bonds held in the fund.
The idea that real interest rates — that is, adjusted for inflation — will be lower than they have been historically is reflected in the pronouncements of policymakers such as Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary Fund and the pricing of government bonds whose payments are tied to inflation.
Generally, municipal bonds» interest payments are tax - free on the federal level and if they're issued by your state, you won't have to pay state taxes.
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.
While rising rates hurt bond prices in the short term, for long - term investors the higher interest payments can eventually benefit performance.
A bond indenture makes two primary promises: to make generally fixed semi-annual interest payments and to redeem the bond at par value on maturity date.
Now IPIC has missed an interest payment on 1MDB's bonds.
As interest rates rise, the coupon or interest payment for a new bond will also go up, which is good.
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