Sentences with phrase «life of the bond»

Even though the yield - to - maturity for the remaining life of the bond is just 7 %, and the yield - to - maturity you bargained for when you bought the bond was only 10 %, the return you have earned over the first 10 years is an impressive 16.26 %!
Park District officials estimated that debt service for the bonds would add $ 22 annually to the tax bill for a $ 200,000 home over the 13 - year life of the bonds.
If you store the unopened bottle in the refrigerator, it can extend the shelf life of this bond by months.
Throughout the specified life of the bond, you receive a regular dividend income, albeit generally at levels lower than those associated with non-convertible bonds.
Connecticut promised in the bond covenant — its contract with investors who bought those bonds — to budget the full pension contribution required by analysts for the entire 25 - year life of the bonds.
What is the appeal of the institution, and can you see it sustaining through the life of the bond
But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.
That means that the closer you get to paying that tuition payment, the safer you will feel knowing that your bond will come due at maturity and you will get your investment back in full including all interest payments over the life of the bond (assuming no default).
The downside for investors, if a high yield bond is called, is the loss of interest return for the years remaining in the life of the bond.
Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.
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.
Even when using bond index total returns, the current starting bond yield has been highly accurate in predicting returns over the life of the bonds.
With most types of bonds the interest payments and the amount you receive at maturity are both fixed over the life of the bond.
Assuming investors hold the JGB to maturity in 2056, they will achieve a total return of just 2.96 percent over the life of the bond, not accounting for inflation or taxes.
The government bond model uses the initial interest rate as a reasonable expectation for return over the life of the bond.
New York has been advance refunded nearly $ 10 billion state - support debt, creating $ 1.1 billion in savings over the life of the bonds.
It is estimated that the Control Board can save $ 800,000 - $ 1.1 million over the life of the bond.
The fixed rate won't change for the life of the bond, while the inflation rate adjusts every six months.
When you buy an individual bond and hold it to maturity, the coupon payment you receive is constant during the life of the bond.
The interest payments during the life of the bond are subject to being calculated from a lower principal, but the investor is never at risk of losing the total principal of TIPS if held to maturity.
At the end of the life of the bond, you get your original investment back.
Although the OID is treated as tax - exempt to the holder, it will increase the holder's tax «basis» in the bond (over the life of the bond) for purposes of calculating gain or loss if the holder disposes of the bond prior to maturity.
From the bondholder's perspective, OID is simply additional interest that the bondholder will receive on the bond, except that it is paid at maturity instead of annually throughout 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.
However, what the market is willing to pay to participate in the interest payable does change over the life of the bond.
This amount never changes over the life of the bond.
For example, if a corporation borrows $ 10,000,000 through a bond issue, then, from the corporations point of view, the principal amount remains fixed at $ 10,000,000 for the life of the bond.
This doesn't change over the life of the bond.
Now one should argue over whether the expenditures reflect the life of the bonds.
That's because the difference between your purchase price and the bond's face value is amortized over the life of the bond and taxed annually as though it were interest.
If the company chooses to restructure, they might offer a tender to pay off the bond early and issue a new bond on different terms, but the coupon is fixed for the life of the bond.
That loss can be taken at maturity or it can be spread out over the life of the bond.
Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.
You need to tell your broker beforehand whether you elect to accrue the discount annually over the life of the bond.
The downside for investors, if a high yield bond is called, is the loss of interest return for the years remaining in the life of the bond.
That profit can be taxed at maturity (or when it's sold) or it can spread out over the life of the bond or however long you own it.
As with most fixed - income securities, zero coupon bonds offer investors a high degree of safety when held to maturity and the opportunity to earn compound interest over the life of the bond.
When it matures, you receive the full face amount which equals your initial investment plus accumulated interest compounded over the life of the bond.
Generally, investors receive a fixed amount of interest regularly for the life of the bond.
The $ 80 interest per year — remember, the coupon rate stays fixed throughout the life of the bond — would represent a 12 % return ($ 80 received in interest divided by the $ 665 invested).
This rate doesn't vary over the life of the bond.
Usually this rate is fixed throughout the life of the bond.
Zero - coupon bonds provide value to their issuing organization as it eliminates the need for interest payments during the life of the bond, trading the costs of management and overhead for the lower initial selling price.
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.
The first graph below shows that the inflation factored into RRbond prices is the long - term inflation expected over the life of the bond, not the volatile annual CPI heard in the media.
The fixed rate portion of the I Bond is valid for the life of the bond (30 years).
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