Sentences with phrase «market value of the bond»

The Yield of a Bond is the percentage of annual interest that you get paid for your bond depending on the current market value of the bond you purchased.
This is the most important feature of this sheet - calculating the resulting market value of a bond portfolio assuming interest rates change.
Puerto Rico municipal bonds have over 27.1 % market value weight in the S&P Municipal Bond High Yield Index and represent over $ 26.7 billion in market value of bonds in Read more -LSB-...]
The decline in the energy sector has impacted the total market value of bonds in the S&P 500 Energy Corporate Bond Index by over $ 25 billion since July 31st.
The total market value of bonds tracked in the S&P Municipal Bond Puerto Rico Index has fallen by over $ 7.5 billion.
Then input the estimated market value of each bond at the end of the year into column P.
Puerto Rico municipal bonds have over 27.1 % market value weight in the S&P Municipal Bond High Yield Index and represent over $ 26.7 billion in market value of bonds in that benchmark.
Chart 1: Total Market Value of Bonds in the S&P Municipal Bond Puerto Rico Index Read more -LSB-...]
In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).
Bond risks include interest rate risk, in which rising interest rates reduce the market value of the bond, and credit risk, which is the possibility that a company won't be able to pay you interest or principal.
The market value of these bonds fluctuates, too, but you don't see it.
Therefore, if the stock market falls, the market value of a high yield bond is more likely to fall than the market value of a bond with higher credit quality.
The market value of a bond changes over time as it becomes more or less attractive to potential buyers.
It often surprises new investors to learn that even though a bond will repay you $ 1,000 upon reaching its maturity date, the market value of a bond can deviate quite a bit from this amount during its life cycle.
Part of the deal was that as the bonds declined in value AIG had to deposit «collateral», i.e. cash, with Goldman to make up the difference between the face value and the market value of the bonds.
Typically, when interest rates rise, there is a corresponding decline in the market value of bonds.
That said, the market value of your bonds have likely declined a little due to the possible loss of insurance protection.
So the market value of your bond is less than the $ 10,000 that you paid for it.
However, the Fed's decisions on interest rates can also have an impact on the market value of your bonds.
In David's inaugural column on Amazon money and markets «Trees Do Not Grow To The Sky», he calls attention to: «If interest rates and inflation move quickly up, the market value of the bonds that you (or your bond fund manager) hold can drop like a rock.»
«If interest rates and inflation move quickly up, the market value of the bonds that you (or your bond fund manager) hold can drop like a rock.»
If interest rates rise, and the market value of your bond falls, you will not feel any effect unless you change your strategy and try to sell the bond.
As rates move up or down, so does the market value of the bond.
That's why interest rates eventually lose their power to affect the market value of a bond.
If you are considering buying a bond, remember that the market value of a bond is at risk when interest rates fluctuate.
The weight of Puerto Rico debt in the market place as measured the market value of bonds in select indices as of September 29, 2015: S&P Municipal Bond Index (S&P's broadest municipal benchmark): 1.96 % S&P Municipal Bond High Yield Read more -LSB-...]
If the yields on either the 10 - year or the 20 - year bonds were to rise modestly — say, to 3.5 % for the 10 - year, and the 30 - year to 4 % — the market value of the bonds (or of bond funds investing in long - term Treasuries) would decline by 20 % to 30 %.
Bond risks include interest rate risk, in which rising interest rates reduce the market value of the bond, and credit risk, which is the possibility that a company won't be able to pay you interest or principal.
As a general statement, if interest rates are rising the market value of a bond will tend to temporarily fall, and vice versa.
The market value of bonds can go up and down depending on what's happening in the economy and with interest rates.
On the bond side the largest sector measured by the market value of bonds is financials, followed by consumer discretionary.
This change will flow through the duration and convexity formulas and the resulting change in the market value of each bond, and the bond portfolio as a whole, will be displayed both in dollar amounts and percentages.
Most bond indexes are market weighted, meaning they are based on the market value of the bonds.
This is the risk that the market value of the bonds will go up and down as interest rates go up and down.
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