Sentences with phrase «coupon bonds issued»

Note, zero coupon bonds issued by a municipality are exempt from federal, and sometimes local tax, and are not typically held in IRA's.

For this reason, it's advisable to keep zero - coupon bonds in a tax - deferred account or to buy tax - free zero - coupon bonds issued by municipalities.

In addition, if you purchase a zero coupon bond issued by a state or local government entity, the interest compounds free of federal taxes, and in most cases, state and local taxes, too.

A zero coupon bond issued by a corporation or the U.S. Treasury is also taxable, unlike those offered by a municipal issuer.

A zero - coupon issued by a corporation which can be converted into that corporation's common stock at a certain price, or a zero - coupon bond issued by a municipality which can be converted into an interest - bearing bond under certain circumstances.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

He shares the consensus view that the 30 - year bull market in bonds is now spent and recommends buying floating - rate notes issued by corporations that reset their coupon according to market rates every three or six months.

a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc..)

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

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.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

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 correcissue 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 correcIssue Discount Instruments, to calculate the correct OID

Coca - Cola placed an $ 8.5 billion ($ 9.5 billion) bond issue in February with an attractive coupon of 0.75 %.

Original issue zero coupon bonds, step - up coupons, and coupons that change according to a predetermined schedule are also included.

One thing to note is that there may be a long term capital gains tax on the profits you make from your zero coupon municipal bond depending on what price you bought it compared the the original issue discount price.

The SPV established a bond programme to issue Cedi - denominated medium - to - long - term amortising bonds on the back of ESLA receivables to repay legacy debt to the tune of up to GH cents 10,000.00 million, he said, adding: «The first tranche of bonds issued under this programme, comprised a 7 - year (GH cents 2,408.60 million) and a 10 - year (GH cents 2,375.35 million) bond with coupons of 19.0 percent and 19.5 percent respectively, for a total of GH cents 4,783.97 million.»

The first two bonds, totaling 1.13 billion dollars, was issued at 15 and 7 years period with the same coupon of 19.75 %.

However at 10.75 %, the yield on the bond is still much higher than government's initial target of 8.5 % and also higher than the previous one which had coupon rates of 8 % and 8.5 % percent for its $ 2 billion bond issued.

Hydis (a PVI subsidiary) will issue US$ 18.3 million zero coupon bonds and US$ 12.2 million bonds with coupon rate of 4 % to LGD, PVI said in a filing with the Taiwan Stock Exchange (TSE).

One month later, in February 2017, fellow «AAA» - rated Johnson & Johnson issued USD 2.5 billion of 30 - year bonds with an average of coupon of 3.7 %.

In January 2017, Microsoft Corp issued a total of USD 7.5 billion of 30 - year bonds with an average coupon of 4.2 %.

Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.

You may also come across zero - coupon bonds which pay no interest but which are issued at a discount to the value on maturity, creating a capital gain.

In most cases, a bond's coupon is set when it's issued, and the rate won't change.

Between the issue date and maturity date, the bond issuer will make coupon payments to the bondholder.

Trills, being perpetual bonds with a growing coupon, are longer than any fixed income instrument that I have ever seen, so if they were issued in large amounts, who knows what the initial yields would be?

Assuming the bond was actually issued with a negative coupon, if you are short (borrowing someone else's bond to sell the bond at a lower price / higher yield) Who pays the coupon?

One of the most common ways is to issue debt in the form of bonds which allows investors to receive an interest payment also known as a coupon payment.

Bond: A bond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bBond: A bond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bbond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bondbond.

Zero coupon bonds are issued at a discount to par value.

At the same time, these 10 companies have issued 362 individual securities that are held in the Global Aggregate, and there are a dizzying array of factors that determine the relative value of each of these bonds, including currency, maturity, coupon, liquidity, and structure, just to list a few.

For example, suppose an investor purchases a 20 - year, zero - coupon municipal bond at an original issue at a price of 50.

Newly - issued bonds tend to have coupon rates that match or exceed the current national interest rate.

As a result, the bonds already on the market will fall in price in order to match the same coupon rate at which the new issues are trading.

If the bond has face value $ 1100 five years from now and is sold by the issuer for $ 1000 today, then it is not a coupon bond in the usual sense of the word (and it does not have a 10 % coupon) but rather it is a zero - coupon or original issue discount bond.

If the company chooses to restructure, they might offer a tender to pay off the bond early and issue a new bond on different terms, but the coupon is fixed for the life of the bond.

Conversely, if conditions improved, or under the same conditions ACME company issued bonds with a higher coupon / rate of return, the market might well bid the price of the bond up from its PAR / issuing value, resulting in a lower yield.

Example: Jane buys a newly issued 10 - year corporate bond that has a 4 % coupon rate — that is, its annual payments equal 4 % of the bond's principal.

Government or corporate entities may issue zero coupon bonds.

Depending on the length of time until maturity, zero - coupon bonds can be issued at very large discounts to par, sometimes 20 % or more.

If you think your bond is going to issue an X % coupon, you can look at the balance sheet and see if that kind of return is sensible given the size and mixture of assets.

The savings add up further if the municipal zero coupon bond is issued by an entity in the investor's own state.

New issues offering higher coupons come along, so bonds with a coupon yielding less interest are less attractive and the prices drop.

Try making that 18 years, and you get an idea of how painful it can be to hold long - term bonds during a period of rising interest rates when new bonds are being issued with higher coupon rates.

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.

Some short - term bonds, such as the U.S. Treasury bill, are always issued at a discount, and pay par amount at maturity rather than paying coupons.

The name «coupon» arose because in the past, paper bond certificates were issued which had coupons attached to them, one for each interest payment.

a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate set at the time the bond is issued; generally have a face value of $ 1,000 and a specific maturity date

SS&C Technologies Inc. issued USD 600 million of an eight - year bond with a coupon of 5.875 %.

If investors demanded 6 %, GE would issue $ 100 million in bonds with a «coupon rate» (the interest rate) of 6 % that would be immediately bought by pre-agreed upon banks, funds, and sometimes, individuals.