Sentences with phrase «face value of the bond»
While face value of a bond provides for a guaranteed return, the face value of a stock is often a poor indicator of actual worth.
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The common face value of a bond is $ 1,000.
At maturity, the original face value of the bond would be multiplied by the cumulative inflation rate registered since the date of issue to obtain the final yield at maturity.
A bond option is the right, but not obligation, to buy (via a call) or sell (via a put) a specified face value of bonds at an agreed price (the strike price) on or before the option expiration date (in the case of American - style options) or only on the expiration date (for European - style options).
At maturity date, the full face value of the bond is repaid to the bondholder.
In terms of total face value of bonds outstanding, the corporate bond market is bigger than each of the markets for municipal bonds, U.S. treasury securities, and government agencies securities.
The stated face value of a bond or stock (as assigned by the company's charter) expressed as a dollar amount per share.
But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.
The company pays interest payments, usually twice a year, until the maturity of the bond when it pays the face value of the bond to investors.
The bond is a promise to repay the face value of the bond (the amount loaned) with an additional specified interest rate within a specified period of time.
Bond prices are quoted as a percentage of the face value of the bond, based on $ 100.
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.
If you hold out until the bond matured, you'll be paid the face value of the bond, even though what you originally paid was less than face value.
Separately, private investors in Greek bonds will be asked to forgive 107 billion euros in debt - a 53.5 percent loss on the face value of their bonds.
Eugene Schonfeld, also opposed to the proposal, notes that the park district, like the majority of taxing bodies that seek voter approval for bond issues, talks only about the face value of the bonds and not the total cost of paying them off over 15 years.
Taxpayers will typically pay 3 to 10 times the face value of the bonds in taxes.
State laws allow bail bond companies to charge defendants a premium of up to 12 percent of the face value of the bond imposed by a judge, in exchange for a promise to pay the full amount to the court if the defendant doesn't show up for trial.
No interest is paid, but at maturity you receive the face value of the bond.
At the end of the term of the bond, the borrower returns to the lender the face value of the bond (the amount the lender invested in the bond).
When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.
But if you buy and sell bonds, you'll need to keep in mind that the price you'll pay or receive is no longer the face value of the bond.
When the term ends, the issuer pays the investor the face value of the bond or T - bill, plus interest.
In total, he would receive five payments of $ 2.50, in addition to the face value of the bond due at maturity which is $ 100.
Unfortunately, if the bond is sold after four years and interest rates have been increased dramatically to combat inflation the face value of the bond will decrease.
Because the amount of market discount, two points, is less than the de minimis amount (which in this case is 2.5 points, or 0.25 percent of the face value of a bond times the number of years between the bond's acquisition and its maturity), the market discount is considered to be zero and the difference between purchase price and sales price or redemption is generally treated as a capital gain upon disposition or redemption.
Upon maturity, a zero coupon bondholder receives the face value of the bond.
Under the de minimis rule, if a bond is purchased with a small amount of market discount — an amount less than 0.25 percent of the face value of a bond times the number of complete years between the bond's acquisition date and its maturity date — the market discount is considered to be zero.
That's the coupon rate, based on the face value of the bond.
The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time.
If you buy an individual 10 - year bond, you know you'll collect fixed interest payments twice a year, and you know you'll receive the face value of the bond when it matures in a decade.
The bond is a promise to repay the face value of the bond (the amount loaned) with an additional specified interest rate within a specified period of time.
Bonds are purchased with the expectation that bondholders will receive regular interest payments, usually semi-annually, and then will receive the face value of the bond — usually $ 1,000 — when the bond is redeemed.
Bond prices are quoted as a percentage of the face value of the bond, based on $ 100.
The present value of expected cash flows is added to the present value of the face value of the bond as seen in the following formula:
The face value of a bond is the dollar amount on which interest is calculated.
When buying a Series I or electronic Series EE bond, you pay the face value of the bond.
Simply multiply the coupon by the face value of the bond to determine the dollar amount of your annual interest payments.
If you hold out until the bond matured, you'll be paid the face value of the bond, even though what you originally paid was less than face value.
When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.
The coupon interest rate of the bond (multiply this by the par or face value of the bond to determine the dollar amount of your annual interest payments)
The term refers to the face value of the bond, that is, the value at which the issuer will redeem the bond at maturity (assuming it does not default).
When the bond matures, the bondholder receives the face value of the bond ($ 5,000 in this case), barring default.
The OID may be seen as a form of interest, since the buyer receives the face value of the bond even though he paid less than par when it was purchased.
That's $ 70 (7 % of the $ 1,000 face value of the bond) annually divided by two.
In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due.
Usually on a fixed - coupon bond (e.g. Government bond) the interest rate is fixed for a given period (say 10 years), and if market rates rise the face value of the bond falls, to compensate for the lower return a new buyer would get, compared to the market interest rate.
So as interest rates rise, the face value of the bond remains steady because the coupon rate on the FRN rises too.
For individual bonds, there is a maturity date at which you can expect to receive the face value of the bond (the issuer's creditworthiness is important here).