However, one disadvantage of issuing government bonds is that as
the government bond payments are made in the local currency of the country, there is a risk of inflation of the currency and in case of inflation, the value of the currency paid to you for the government bonds that you own may decrease.
Not exact matches
As the Christian Science Monitor noted, that's probably a more realistic concern for China, which holds $ 1.3 trillion in U.S.
government bonds, than Washington missing interest or principal
payments.
An individual in the second or third country can sell his
government bonds, but an individual in the first or fourth country can borrow against his future transfer
payments.
The bill would also allow state and local
governments to issue Build America
Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works proj
Bonds that provide a direct
payment from the federal
government for a part of the interest paid on
bonds that finance government works proj
bonds that finance
government works projects.
Failing
payment, the ECB threatened not to accept Greek
government bonds as collateral.
Without debt restructuring, Puerto Rico will be forced to default as it faces nearly $ 2.5 billion in
bond payments from May through July,
government officials have said.
The idea that real interest rates — that is, adjusted for inflation — will be lower than they have been historically is reflected in the pronouncements of policymakers such as Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary Fund and the pricing of
government bonds whose
payments are tied to inflation.
It sold stock in the company to the public, with
payment to be made in
government bonds.
The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the
government and state - run oil firm PDVSA to be in partial default for missing interest and principle
payments on
bonds.
First, the Puerto Rican
government will try to unilaterally decide which
bond payments it needs to skip in order to keep the lights running.
Congress should provide a direct -
payment bond option, in which state and local
governments receive direct federal
payments to subsidize a portion of the taxable interest paid to private
bond holders.
The state Constitution mandates that the
government make its
bond payments and pension contributions.
Since the crash, a down - spiral is underway in the $ 2.8 trillion municipal - funding system, in which local
governments don't have the revenue to meet
bond payments, they can't get new financing, municipal
bond rates are rising, and, to worsen it all, crazy credit default swap deals have been foisted on localities.
«Statistically» this year to date, «only» 30 municipal issuers have officially defaulted on $ 1.5 billion in
bonds, but thousands of
government authorities are in de facto default on
payments, and madly scrambling for re-negotiation, or forebearance, or blind hope.
When we last tuned in to the seemingly endless conflict between New Paltz
government and developers seeking to build student housing for the college, the town board had
bonded with the village board in opposing any kind of
payment in lieu of taxes (Pilot) agreement for the developer.
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.
When you buy a
bond, you give a
government or corporation a sum of money in exchange for the promise of interest
payments for a specified period.
A group of three different credit agencies work together to calculate the score, which measures how likely the
government is to make
payments on the
bonds that it issues once they mature.
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 b
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 b
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
bondbond.
Treasury Inflation - Protected Securities (TIPS) are a type of
government bond that provides protection against inflation along with twice a year interest
payments.
Flower
bonds: U.S.
government securities that were issued at a discount from par value, but are acceptable at par in
payment of estate taxes.
Each year, you observe how much the
Government increases the amount paid per
bond and divide it by the
Government's original (first year)
payment per
bond.
Lower Taxes — The U.S.
government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or
bond interest
payments.
So if you've got cash in the bank, stocks,
bonds, retirement accounts, CDs or GICs,
government benefits, pension
payments, mutual funds, exchange - traded funds, or cash stuffed in your mattress then you've got financial assets.
Lease rental
bond: A municipal revenue
bond that is supported by lease
payments on a building, usually a building leased to a
government agency.
Entities like corporations, cities and
governments issue
bonds and promise to pay it back with interest
payments, generating a regular stream of income.
This risk is minimal for mortgage - backed securities issued by
government agencies or
government - sponsored enterprises — also known as «agency» securities issued by Ginnie Mae, Fannie Mae or Freddie Mac — and most asset - backed securities, which tend to carry
bond insurance that guarantees
payments of interest and principal to investors.
Tax will be deducted at source while making
payment of interest on the non-cumulative
bonds from time to time and credited to
Government Account.
While a weaker dollar may boost U.S. exports and the profits of U.S. companies with overseas operations, weaker foreign demand for U.S. Treasury
bonds would push up long - term interest rates, raising mortgage
payments for U.S. homeowners and borrowing costs for an indebted
government.
To pay the financial obligations owed to an injured party, a defendant — or more usually, his or her casualty insurance carrier — will purchase one or more annuities from a life insurance company, or delegate its periodic
payment obligations to a third party, which in turn would purchase a qualified funding asset — either an annuity or a
government bond.
Build America
Bonds (Direct Payment) are bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on such b
Bonds (Direct
Payment) are bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on such
Payment) are
bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on such b
bonds in which the U.S. Treasury Department pays state or local
government issuers a
payment equal to 35 percent of the coupon interest payments on such
payment equal to 35 percent of the coupon interest
payments on such
bondsbonds.
The new Build America
Bond Program allows state and local
governments to issue taxable
bonds in 2009 and 2010 for
government capital projects and receive a direct federal subsidy
payment from the US Treasury for a portion of their borrowing costs.
Bonds issued by a crown corporation but guaranteed by the applicable
government as to interest and principal
payments.
Any
bond issued by a corporation or
government that has a maturity greater than 12 months can be considered a balloon - type long - term liability since the amount that must be paid to retire the
bond at maturity is substantially more than the interim interest
payments.
1T - Bills are guaranteed as to the timely
payment of principal and interest by the U.S.
Government and generally have lower risk - and - return than
bonds and equity.
Governments, municipalities, and corporations issue zero coupon
bonds, which are designed and priced to attract investors who prefer a single payout on maturity rather than a series of
payments over a number of months or years.
The Fed purchases
government securities through private
bond dealers and deposits
payment into the bank accounts of the individuals or organizations that sold the
bonds.
In other words, investors believe that there is no chance that the U.S
government will default on interest and principal
payments on the
bonds it issues.
Automated Clearing House (ACH) BND Direct - Cash Management
Bond Registrar Certificates of Deposit Checking Account Disputed Royalty
Payments Escrow Agent
Government Security Purchases Merchant Card Services Oil and Gas Cash
Bond Paying Agent Positive Pay Remote Deposit Capture Safekeeping Savings Account Trustee Wire Transfers
If I buy a German
government bond, do I have to send them a coupon
payment?
Any excess of taxes over benefit
payments is invested in special U.S. Treasury
bonds, which earn the average rate of return on publicly traded
government debt.
Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princi
Government bonds and Treasury bills are guaranteed by the US
government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princi
government as to the timely
payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
If the revenue from the specific project is not sufficient to cover the
payments owed to bondholders, then the
government entity that issued the
bonds is not required to step in and make
payments.
Agency securities are guaranteed by the U.S.
government as to the timely
payment of principal and interest, however this guarantee does not apply to the yield, nor does it protect against loss of principal if the
bonds are sold prior to the
payment of all underlying mortgages.
Zero - coupon
bonds represent the ownership of principal
payments on U.S.
government note or
bonds.
Every week, every month, the Fed collects interest on all those
bonds — from the taxpayers, in
government bonds, but, indirectly, from all the homeowners making
payments on their mortgages.
If interest rates continue to climb, there is less to gain by replacing older
bonds, but local
governments may issue taxable
bonds if they see an opportunity to reduce interest
payments.
However, longer - dated U.S. Treasuries (guaranteed by the federal
government as to the timely
payment of principal and interest) tend to be more rate - sensitive than other types of
bonds.
Data Source: Thomson Reuters, 1/18; * T - Bills are guaranteed as to the timely
payment of principal and interest by the U.S.
Government and generally have lower risk - and - return than
bonds and equity.
Zero coupon
bonds still involve lending money to a
government or company but instead of receiving regular interest
payments you get the «interest» at the end of the term.