To offset this risk, bonds with
long maturity dates pay a higher interest.
To offset this risk, bonds with
long maturity dates pay a higher interest.
Not exact matches
The
date on which the bonds will be
paid off is called the
maturity date and may be set at a few years out or, believe it or not, for as
long as 100 years away.
Given similar credit profiles, a shorter
maturity security will generally
pay you a lower interest rate, but you'll be taking on less risk than if you invested in a
longer dated bond that should
pay a higher yield.
Preferred stocks usually
pay a fixed dividend and can have a very
long or infinite
maturity date.
«They're superbonds in the sense they don't have the
maturity date, so they will continue to
pay fixed amounts as
long as necessary.»
Bond: A
long - term debt instrument with the promise to
pay a specified amount of interest and to return the principal amount on a specified
maturity date.
A
long - term debt instrument with the promise to
pay a specified amount of interest and to return the principal amount on a specified
maturity date.