Sentences with phrase «interest rate bonds»

So that's the risk that you're taking on some of these higher interest rate bonds.

Despite the lower interest rate these bonds deliver, they generally provide a higher total yield, on an after - tax basis, to bond investors.

If you invest in fixed interest rate bonds, you'll get the same coupon payment every quarter or six months for the life of the bond.

Therefore, old bonds with lower interest rates attract a lesser price from investors whom will sell them to buy the higher interest rate bonds.

This insurance fee is paid by the broker and will likely lower your interest rate, but it is much better to get insured and earn smaller interest rate, than go for bigger interest rated bonds at your own risk.

The disadvantage of bond funds in general right now is their low rate of return and the fact that once the Federal Reserve starts to increase interest rates bond funds typically decrease in value.

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.

These international investors may not always have an appetite for low interest rate bonds like mortgage backed securities, to which U.S. mortgage rates are tied.

There are Interest Rate Hedge ETFs; there are ways to invest in the bond market (a «bond ladder» where you reinvest every so often a portion of your bond holdings in the new higher interest rate bonds); or investing in companies that will prosper in a higher interest rate environment, including banks, FOREX trading firms, etc..

Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the state an attractive place for investors seeking steady returns higher than they can find in low - interest rate bonds.

Because Judy and Bill are locked into the interest rates the bonds pay, inflation could erode their buying power if it rises much above the long - term average of 3 % a year.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event; generally expressed as an annual percentage of the bond's face value

Unlike those who have all their money in 10 year bonds and are either «locked in» with the interest rate the bonds had at their time of purchase, or forced to sell for a loss if they want a higher rate.

In English, that basically means that a 1 % rise in interest rates has a bigger impact on long maturity low interest rate bonds than it does on than it does on long maturity high interest rate bonds.

Auction - rate securities are long - term bonds that were treated as short - term securities because investors could sell them at auctions that took place every few weeks, which also served to reset the interest rate the bonds paid.

The larger or «wider» the spread, the higher the credit risk of the high interest rate bond compared to the low interest rate bond.