Sentences with phrase «holds the bond until»

In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.

Whether the fund's mandate is broad or narrow, bond funds invest in many different securities — often buying and selling according to market conditions and rarely holding bonds until maturity — so it's an easier way to achieve diversification even with a small investment.

When it comes to selling bonds, you have a default option that always allows you to avoid the retail bid / ask beating: just hold the bond until it is called or matures.

This allows investors to eliminate interest rate risk at their investment horizon by simply holding a bond until maturity.

By buying and holding bonds until maturity, investors can also buy bonds with coupon payments and maturities that meet specific income needs, as they know exactly how much they are going to receive over the life of the bond.

The total return you receive by holding a bond until it matures is measured by yield to maturity.

If you hold the bond until it is called or matures then you will get the face value back to avoid lost of principle except for the premium paid.

If you decide to hold the bond until maturity, 6/1/2025, you will only get $ 100 of the $ 121.566 you invested back.

The key is to hold the bond until it matures.

Because this calculation is only necessary to determine the bondholder's basis, it need not be done by the bondholder until sale or other disposition of the bond and, if the holder holds the bond until maturity, it need never be done.

YTM is the total annualized return received by the investor, assuming that he or she holds the bond until it matures and reinvests coupon payments.

I've held XSB and XBB before and I'm not a huge fan of them because they don't necessarily hold their bonds until maturity (especially the long term fund), so you face realized capital losses when then sell bonds to maintain their duration range.

Even if there is deflation (where prices drop), and you hold the bond until maturity, you will always at least get your principal back.

However, if an investor holds a bond until maturity, he or she will be repaid 100 % of invested principal, provided the bond issuer remains solvent.

However, some ETF providers have begun issuing ETFs with specific maturity dates, which hold each bond until they expire and distribute the proceeds once all bonds have matured.

If you buy a bond at 100 % of the principal value and hold the bond until maturity, your return is equal to the interest you receive.

The buy and hold strategy is where investors buy bonds with good investment grade score and good interest rates and hold the bonds until the maturity period is reached.

Her alternative is to hold the bond until it matures, possibly many years in the future, when she'd be repaid the original $ 1,000 she loaned Corp A, and collect all the interest payments along the way.

In other words, it is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled.

Current yield represents the return an investor would expect if the owner purchased the bond and held it for a year, but current yield is not the actual return an investor receives if he holds a bond until maturity.

Yield to maturity (YTM) is the total return earned on a bond, assuming that the bond owner holds the bond until the maturity date.

This means that holding these bonds until maturity will mean they will only receive half of the original nominal value of the bond, and that is assuming no further write downs occur.

If you hold bonds until the maturity date, you will get all your money back as well.

If you don't want to hold the bond until the maturity date and decide to sell it on a secondary market, you may get a lower price than the face value.

Liquidity risk is also eliminated by buying and holding a bond until maturity, because there is no need to trade it.

The most basic strategy for investing in municipal bonds is to purchase a bond with an attractive interest rate, or yield, and hold the bond until it matures.

A strategy for investing in which investors buy a bond and hold the bond until the date of maturity when the investor receives principal back and interest, if any.

Not exact matches

That money, which is mostly held in short - term U.S. bonds and money market funds, was kept in Ireland for years, until an investigation by the European Union into whether the company failed to pay taxes caused it to move its holdings to Jersey, a small island off the coast of Normandy that rarely taxes corporations.

A softening in euro zone economic data and signs that inflationary pressures remain subdued, encouraging the European Central to hold off from raising interest rates until well into 2019, have supported bond markets in recent weeks.

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures.

Holding a bond ladder that you can liquidate when the market is down provides the alternative to selling stocks at the worst possible times, and allows you to wait until the stock market recovers.

Holding individual bonds is often looked at as being superior to bond funds because you can simply hold an individual bond until maturity.

If you buy a bond for less than face value on the secondary market (known as a market discount) and you either hold it until maturity or sell it at a profit, that gain will be subject to federal and state taxes.

I'm assuming you're planning to hold until maturity, since the rising interest rate environment will reduce the price of the bonds, should you decide to sell.

There is NO GUARANTEE to any investment except for an FDIC insured savings account up to $ 250,000 per person or holding a US Treasury bond until maturity.

Property and casualty insurance companies invest a substantial percentage of book value and policyholder «float,» which is money they hold until policy claims are paid out but do not own, in investment - grade bonds, particularly corporate bonds.

The beauty of being a long - term investor though is that you will still make the same return on the investment if you hold it until the bond matures.

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.

A Reuters poll published on Thursday showed primary bond dealers, who work directly with the central bank, now expect interest rates to stay on hold until the second quarter of 2015.

«Indian government bonds have a strong upside potential but we want to wait until the next budget to decide wheter to increase or not our 8 % holdings,» he said.

Soon the investor learns that when purchasing bonds they are also not obligated to hold the bond or bonds until the maturity date.

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.

There are three distinct average maturity ranges for municipal bond funds, which is a measure of how long the bonds the fund holds have until maturity.

These bonds, which draw interest, are being held by the Social Security administration until they come due in the 21st century.

Adelaide's own mother decided that holding them should wait until they opened their eyes, giving them a week of bonding extra close with their Mama cat, a change to grow just a little bit bigger, and also giving Mama cat just a little bit more breathing room.

To bond with your baby, hold, rock, and coo at him, but wait until after he eats so you'll have his full attention.

Perhaps it's also just me who conjures up images of Kubrick's «A Clockwork Orange» with James Bond, or who knows, Theresa May forcibly holding eyelids open while forcing convicts to watch reruns of the Royal Wedding until they're overcome with an unexpected wave of patriotism and loyalty for the establishment they had hitherto wanted to destroy?

Ballinger was held in the Tompkins County Jail on $ 25,000 cash bail or a $ 50,000 bond until his release on Tuesday.

A Manhattan Supreme Court justice recently ruled that the tenured professor can keep his position until a special hearing is held to determine whether he can stay on, but he has to post a $ 350,000 bond in case he loses so the school can easily recover his salary and other costs if it wins, The Post exclusively reported earlier this month.

The researchers subjected the metallic iron oxide particles to radiation until the DNA bonds holding them together broke, releasing fluorescent materials.