Sentences with phrase «interest during the life of the bond»
This is why zero - coupon bonds tend to be more volatile, as they do not pay any periodic interest during the life of the bond.
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Zero - coupon bonds («zeros») represent a type of bond that does not pay interest during the life of the bond.
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.
Zero coupon bond - a bond that pays no interest during the life of the bond, but is instead sold at a deep discount from its value at maturity
«Zero coupon bonds are bonds that do not pay interest during the life of the bonds.
Not exact matches
In that case, the new owner of the bonds becomes responsible for the tax on the interest accrued during the life of the decedent.
If you inherit savings bonds, for example, you'll owe tax on all interest that accrued during the life of the previous owner.
As you probably know, a bond pays a fixed rate of interest during its life.
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.
As mentioned, a bond pays a fixed rate of interest during its life — and when a bond matures, the holder gets the bond's face value.
In return, a bond pays a fixed rate of interest during its life.
It would be nice to invest in muni - bonds and live off interest during retirement, but you need a whole lot of money to do that.
For one thing, at today's low interest rates bonds simply aren't likely to provide enough income for most people to live on even in the early years of retirement, let alone allow them to maintain their purchasing power in the face of inflation during a post-career life that, as this longevity tool shows, could easily last into their 90s.
Bonds are debt instruments with fixed terms of repayment and with fixed interest payments made during the life of the bond.
As with other investments, higher risk means higher return in the form of higher interest payments during the life of the bond.