Sentences with phrase «callable bonds with»

Pricing Callable Bonds with Stochastic Interest Rate and Stochastic Default Risk: A 3D Finite Difference Model by David Wang of Hsuan Chuang University (62K PDF)-- 10 pages — February 2005

When rates drop to 6 %, the company calls the bonds, pays each investor his principal and a small call premium, and then issues new callable bonds with a 6 % interest rate.

For example, Company A issues callable bonds with an 8 % interest rate.

A callable bond with a call price based on the greater of (a) par or (b) the price based on the yield of an equivalent - term Government of Canada bond plus a specified yield spread.

Not exact matches

For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond.

Callable bonds are more risky for investors than non-callable bonds because an investor whose bond has been called is often faced with reinvesting the money at a lower, less attractive rate.

For instance, a callable municipal bond is issued with a 6 % yield.

It is important to know if there are any special features or conditions associated with a bond you are considering for investment because that may affect your decision - making and potential income (from interest if it is callable).

So if Company XYZ's bonds are callable, and rates fall from 10 % to 3 %, Company XYZ will probably call the 10 % bonds and issue new bonds with a lower coupon.

Option free bonds have positive convexity; bonds with embedded options, such as callable bonds and mortgage - backed securities, have negative convexity, meaning the graph of the relationship between their price and yield is convex rather than concave.

Callable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovCallable agency bonds with «step up» coupon rates: callable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors ovcallable agency bonds that have a pre set coupon rate «step up» that provides for increases in interest rates or coupon rate as the bonds approach maturity to minimize the interest rate risk for investors over time.

I agree that corporate bonds are an attractive asset class — the problem is that I have a lot to learn about understanding the complex features (e.g. callable, etc.) I think it's better to build a bond ladder with bonds that are not callable.

c is a conversion factor equal to the price at which a bond with the same time to maturity as said bond or, if callable, same time to first call (as per Rule 18101.

Meanwhile, you're very happy with the higher rate that callable bonds customarily pay.

For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond.

High - yield bonds are typically issued with maturities of 10 years or less, and are callable after four to five years.

Premium callables trade at «yield to call» — meaning that the price of the bond is calculated with the assumption that the bond will be called — and carry extension risk.