Not exact matches
What will be the mix between interest rate cuts, reductions in the
face value of debt, and rescheduling of
payments?
If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than
face value, since other investors are willing to pay a premium for a bond with a higher interest
payment.
With smaller -
value retail
payments — think of buying a coffee — consumers and institutions are willing to accept additional risk and do not
face immediate time constraints for receiving money.
A bond with a
face value of $ 1,000 would generate $ 30 a year in
payments for the length of the term, which would ultimately be $ 900 per bond, plus the yield.
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.
British supermarket chain Tesco is
facing legal claims that it is paying women less than men for work of equal
value, in a case that lawyers estimate could ultimately cost it as much as 4 billion pounds ($ 5.6 billion) in compensation
payments.
He proceeded to censure cryptocurrencies, arguing that digital coins are not a store of
value, and
face scalability issues in comparison with centrally intermediated
payment systems.
On
face value bitcoin isn't set to affect many peoples lives as a
payment option.
The
payment of the accelerated death benefit reduces the stated
face amount and stated cash
value.
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.
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.
By buying a bond, you're giving the issuer a loan, and they agree to pay you back the
face value of the loan on a specific date, and to pay you periodic interest
payments along the way, usually twice a year.
Payment for the
face value of the insurance policy or death benefits, which your beneficiary or beneficiaries will receive after you pass away
Many retirees
face the choice of taking monthly
payments from their employer's pension plan or transferring the commuted
value into an investment account.
The bond issuers promise to pay you back for the full loan amount, also called par
value,
face value, maturity
value or principal, and usually with regular interest
payments on the par
value.
The yield of an instrument such as a bond is the ratio of its coupon (
payment) to its Par
value (price /
face value).
Annual coupon
payments will, therefore, be 5 % x $ 1,000
face value of corporate bond = $ 50.
Simply multiply the coupon by the
face value of the bond to determine the dollar amount of your annual interest
payments.
Bond valuation includes calculating the present
value of the bond's future interest
payments, also known as its cash flow, and the bond's
value upon maturity, also known as its
face value or par
value.
These bonds don't make periodic interest
payments and will only make one
payment (the
face value) to the holder at maturity.
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
face value of a loan refers to the amount of principal that a borrower has to repay the lender, which is also the amount of money that the interest
payment calculation is based upon.
A zero coupon bond, on the other hand, is sold at a discount from its
face value and the issuer makes no interest
payments during the life of the security.
Bonds are not necessarily issued at par (100 % of
face value, corresponding to a price of 100), but bond prices will move towards par as they approach maturity (if the market expects the maturity
payment to be made in full and on time) as this is the price the issuer will pay to redeem the bond.
When a stock goes to zero, you lose everything, where as a bondholder will get some
face value redemption to the notes issue price and still keep all the previous income
payments.
That's because GICs are always sold at
face value, never at a premium, so you won't be hit with the one - two punch of high interest
payments followed by capital losses.
The bond investment grade is assigned after assessing the potential of the bond and the bond issuer and depicts how likely and reputed the bond issuer is when it comes to the interest (coupon)
payment and also the repayment of the principal
face value amount once the bond maturity period is completed.
The
payment flexibility you have available with a North American Universal Life policy varies depending on the
face amount and its cash
value, so you should talk to an insurance agent to understand exactly how flexible your policy can be.
However, since they've bought it for less, they will often accept
payment that's less than the
face value of the debt because anything more than what they've paid is profit.
Unlike a conventional bond, whose issuer makes regular fixed interest
payments and repays the
face value of the bond at maturity, an inflation - indexed bond provides principal and interest
payments that are adjusted over time to reflect a rise (inflation) or a drop (deflation) in the general price level for goods and services.
The coupon rate, however, does not change, since it is a function of the annual
payments and the
face value, both of which are constant.
Considering the low likelihood that such bad debt will ever be repaid, debt buyers make their money by taking over these obligations for a fraction of their
face value and aggressively going after consumers for
payment using letters, calls and lawsuits.
A company issuing a bond is selling a series of future
payments: the regular coupons, and the maturity
payment of the
face value.
The interest
payments and the bond's
face value are protected against inflation.
So if you want to find the monthly
payment of a loan, enter the
face value of the loan as a positive in the present
value field.
For example, if you can buy a bond with a $ 1,000
face value and 8 % coupon for $ 900, and the bond pays interest twice a year and matures in 5 years, enter «1,000» as the Face Value, «8» as the Annual Coupon Rate, «5» as the Years to Maturity, «2» as the Coupon Payments per Year, and «900» as the Current Bond Pr
face value and 8 % coupon for $ 900, and the bond pays interest twice a year and matures in 5 years, enter «1,000» as the Face Value, «8» as the Annual Coupon Rate, «5» as the Years to Maturity, «2» as the Coupon Payments per Year, and «900» as the Current Bond P
value and 8 % coupon for $ 900, and the bond pays interest twice a year and matures in 5 years, enter «1,000» as the
Face Value, «8» as the Annual Coupon Rate, «5» as the Years to Maturity, «2» as the Coupon Payments per Year, and «900» as the Current Bond Pr
Face Value, «8» as the Annual Coupon Rate, «5» as the Years to Maturity, «2» as the Coupon Payments per Year, and «900» as the Current Bond P
Value, «8» as the Annual Coupon Rate, «5» as the Years to Maturity, «2» as the Coupon
Payments per Year, and «900» as the Current Bond Price.
Both their
face value and interest
payments are pegged to the Consumer Price Index and adjusted twice a year, which means you're guaranteed to maintain your purchasing power over the life of the bond.
For example, if a bond has a
face value of $ 100 but you bought it 11 months after the last annual interest
payment was made, you would have to pay the seller more than $ 100 to take into account the interest accrued.
If the product's reference asset has a positive cumulative return on the call date, the product is called and investors receive any accrued coupon
payments and the
face value of the note.
If the reference asset's price never crosses the barrier, investors receive the coupon
payments plus the
face value of the product.
Like traditional bread - and - butter bonds, converts have
face values, coupon
payments and maturity dates.
Discount notes have no periodic interest
payments; the investor receives the note's
face value at maturity.
While the other tranches are outstanding, the Z - tranche receives credit for periodic interest
payments that increase its
face value but are not paid out.
This reflects the coupon
payments and the difference between the price and the
face value of the bond.
Paid - Up Additions Rider: The PUAR allows you to make premium
payments in addition to your base premiums to increase your
face amount and accumulate more cash
value.
If the issuer redeems the bonds early, they will usually pay you the
face value of the bond with any accrued interest to date since your last interest
payment.
In this case, you should be paid the
face value of the bonds (that is, what you paid for them when they were first issued) plus any interest due to you since the last interest
payment.
For coupons, which are usually for a stated percentage of the
face value of the instrument, the daycount convention does not matter unless the coupon is paid late or the bond is a callable bond that is called in between two coupon
payments.
Bonds selling above
face value because their interest
payments are higher than prevailing interest rates.