Sentences with phrase «expected yield to maturity»

In order for an investor to actually receive the expected yield to maturity, she must reinvest the coupon payments she receives at a 10 % rate.

Not exact matches

«The extra reward you get in the form of higher yields from stretching on maturity will come back to haunt you should inflation trend upwards faster than expected,» said financial advisor Manisha Thakor, director of wealth strategies for women at The BAM Alliance.

Fed rates most directly affect yields on shorter - maturity bonds, and I don't expect yields on longer maturity bonds to rise in the same way or to the same degree.

This was called the «conundrum 2.0 ″ as it referred to an earlier period (2004) where Fed tightening was met with huge global demand for Treasury debt that led to smaller increases in longer maturity yields than expected.

However, in the case of a Defined Maturity Fund, the SEC yield when you buy is a good estimate of the annualized return you can expect holding the fund to mMaturity Fund, the SEC yield when you buy is a good estimate of the annualized return you can expect holding the fund to maturitymaturity.

At the current term to maturity of seven years and with a size of $ 1 billion, it's expected that the loan could yield investors between 5.28 - 5.47 % to maturity.

The yield to maturity is the average rate of return an investor can expect if she purchases the bond and holds it until maturity.

CLF pays out about 4.2 % in fully taxable interest, and since its yield to maturity is just 1.4 %, you can expect it to suffer significant capital loss every year.

The market price of a bond is the present value of all expected future interest and principal payments of the bond discounted at the bond's yield to maturity, or rate of return.

With the understanding that the shorter the maturity, the more closely we can expect yields to reflect (and move in lock - step with) the fed funds rate, we can look to points farther out on the yield curve for a market consensus of future economic activity and interest rates.

A bond's «yield to maturity» is the rate of return that you can expect until the bond matures, or will be repaid.

As a result, the expected annual returns for the funds (based on each fund's yield to maturity minus its annual fee) falls to about 1.2 %, 1.9 %, and 1.9 % for VSB, VSC, and VAB respectively.

Treasury yields across maturities rose leading up to the meeting, with short - term rates rising the most as markets took into account the Fed's expected pace of three to four rate hikes in 2017.

Flat Yield Curve - This curve indicates the yields of bonds with different maturities are relatively constant, and is seen when interest rates are expected to decline moderately but offset by positive term premium.

In our analysis, quarterly yield differences (after MER) and maturity differences between XSB and XBB were examined to determine when a switch from one to the other would have made sense (i.e. would have given us an additional 0.15 % of annual expected yield for each additional year of term risk).

The horizontal axis represents years to maturity and the vertical axis the expected yield.

Therefore, when analyzing yields for muni bonds offered on the secondary market, the yield - to - maturity figure is usually sufficient to determine an expected return.

In other words, if interest rates stay the same, you can expect CLF to post capital losses because its cash yield is higher than its yield - to - maturity.

Yield to maturity is a bond's expected internal rate of return, assuming it will be held to maturity, that is, the discount rate which equates all remaining cash flows to the investor (all remaining coupons and repayment of the par value at maturity) with the current market price.

When investors expect longer - maturity bond yields to become even higher in the future, many would temporarily park their funds in shorter - term securities in hopes of purchasing longer - term bonds later for higher yields.

Conversely, if a fund purchases these securities at a discount, a prepayment rate that is faster than expected will increase yield to maturity, while a prepayment rate that is slower than expected will reduce yield to maturity.

Investors are expected to earn an estimated 5.4 % annual return over the life of the project, well above the current 2.66 yield to maturity of the current, on - the - run 10 - year US Treasury note.