Sentences with phrase «buy bond»

One further, but minor, complication: when you buy a bond, in addition to the purchase price you also pay pro rata interest to the seller.

If you buy this bond for $ 1000 and hold it for 5 years you will get $ 1100 back.

So when choosing to buy a bond, you look at the money you're going to get, both over the short term (the coupon rate) and the long term (the face value), and you consider whether $ 80 now is worth $ 100 in 20 years, plus $ 2 per year.

You buy a bond for $ 1,500; this is the face value.

PS — Who would buy a bond like this?

Here's how it works: You buy a bond and your investment will fund a pool of students at one class at the university or business school chosen by you.

Think about it this way: if you buy a bond that matures in 5 years, you're effectively betting that you won't have an emergency for the next 5 years.

What you pay depends on a number of factors: Where you buy the bond — say an online broker or a full service investment firm; what type it is — U.S., Canadian, corporate or government; and how much of it you want — the price can go down the more you buy, so institutional investors usually get a better price.

When you buy a bond, you are in effect lending a company or the government, referred to as the bond issuers, some money for a specific period of time, typically anywhere from less than one year to 20 years.

Without recall: In the municipal bond market, a dealer quote with an option to buy the bond at a guaranteed price for some period of time (often one hour).

More people would buy the bond, which would push the price up until the bond's yield matched the prevailing 3 % rate.

If you buy a bond and hold onto it until it matures, which many investors do, rising rates won't have any effect on the income you receive.

For example, if interest rates hit a bottom five years (at maturity) after purchasing the bond, then your $ 50,000 would be stuck with a low interest rate if you wanted to buy another bond.

With recall: In the municipal bond market, a dealer quote with an option to buy the bond at a guaranteed price for some period of time (often one hour); the dealer retains the right to recall the bonds and cancel the option.

So lots of people will want to buy your bond, and its price will rise.

Thus, the decision as whether to buy a bond or a bond fund should be based not only on your goals, but also on the size of your portfolio, your personal preference about how involved you want to be with your portfolio and whether you want to work with a financial professional who is skilled in building and managing a bond portfolio.

As explained by other, previous answers, there are good reasons why someone might buy a bond at a negative interest rate (which basically all boil down to «better the devil you know»).

Say you buy a bond that currently costs $ 950, and matures in one year, at $ 1000 face value.

I know that if I buy a bond and hold to maturity, I will get the value plus the coupon.

When you buy a bond, you give a government or corporation a sum of money in exchange for the promise of interest payments for a specified period.

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.

You'll need a brokerage account to buy these bond funds too.

You can buy the individual bonds or you can buy bond funds.

The bid price is the price at which the market is willing to buy the bond; the ask price is the price at which the market is willing to sell the bond.

The big difference is that, when you buy a bond, you're not buying ownership in a company.

Buy a bond that comes due during your child's freshman year, then sophomore, etc..

«Very simply, if as a investor with USD liquidity, I buy a bond denominated in euro and I do not hedge the currency, I do not have fixed income; I have variable income.

when is a best time to buy bond funds.

You buy the bond, wait for it to mature and collect the interest in the process.

Buy a bond from a company, say for $ 1,000, and you're going to hand over the $ 1,000 loan amount.

I could ride out a crash for 3 - 4 years and live off the cash but what worries me is the market crashing and not recovering for 10 years, once in the new sipp, when i rebuy, i could rebalance but id have to buy a bond etf [vanguard] so could increase safe asset class.

If you buy the bond when issued and choose to hold until maturity you'll get back the face value of the bond plus the interest incurred over a ten year period.

So when you buy a bond or a fund that holds bonds, you are lending money to the issuer of the bond.

When investors buy a bond, they are lending money to the entity that issues the bond.

You should use other factors along with credit rating information when deciding whether to buy a bond.

Also, funds buy their bond at institutional prices, which are much lower than the price you pay in the retail market..

Once you buy a bond, your return is locked - in unless the company files bankruptcy or you sell the bond.

I don't buy any bond funds whatsoever.

The ability of the central bank to buy a bond directly from the govt would avoid any contractionary effects while the new money used to pay claims clearly increases the money supply which may help during downturns (when this helicoptering mechanism should be considered for use to some degree).

When you buy a bond or a bond fund, you need to answer a simple question: What role does fixed income play in your portfolio?

Another idea is to buy a bond fund which has coupon rates which float with the market rate.

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.

To get short the markets I either have to go to cash or buy a bond fund, which admittedly turned out quite well (Read: The Proper Asset Allocation Of Stocks And Bonds By Age and see VUSUX).

So, if you figure you're going to need $ 50,000 to pay for her first year of college in 2008, then you'd need to spend about $ 19,050 today to buy a bond to cover that.

Most retail investors just buy bond funds to lower their transaction costs, but this exposes them to market fluctuations.

Because bond prices tend to move in the opposite direction of stock prices, you can also buy bond funds to further balance the risk of those stock funds.

Canadian investors tend to stick close to home when buying bonds and other fixed - income investments, but diversifying is worthwhile if you do your homework

Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy bonds in its QE [Quantitative Easing] program.

Buying bonds on an unlimited basis while indicating that rates will be kept low for years requires some «splaining.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.