Sentences with phrase «maturity date»

The "maturity date" refers to the exact date when a borrowed amount of money must be paid back in full, including any interest or fees that have accumulated. Full definition
This has caused issues for some universal life policyholders, since at one time policies were sold with maturity dates of 85 years of age.
The strategy facilitates early payment or payment on maturity date to the supplier.
Is it possible to avail the surrender value before maturity date.
This has caused issues for some universal life policyholders, since at one time policies were sold with maturity dates of 85 years of age.
Additional deposits have the same maturity date as the initial deposit and become part of the principal.
But if the company whose bond you have didn't go bankrupt, you can still collect your interest and you will still get your full principal at maturity date.
Bond funds differ from individual bonds in that most bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protection.
A target maturity fund invests in bonds with a fixed maturity date.
This is the only guaranteed part of the endowment policies that you will get the assured sum on the policy maturity date or before in case of early death of the insured.
Whether unsecured or secured, business loans come with set maturity dates by which you must repay the loan.
Like other bonds, they promise to pay interest on a regular basis and have a stated maturity date when they return par.
However, the mix of mutual fund holdings varies based on the target maturity date.
No interest is credited prior to the one year maturity date in a particular segment.
As a result, they're often willing to extend maturity dates.
Some policies have a final maturity date, when the cash value equals the death benefit.
A bond fund's average maturity represents the average length of time until each bond in the fund reaches its specific maturity date.
Like other bonds, they promise to pay interest on a regular basis and have a stated maturity date when they return par.
For CD - secured loans, the loan term can exceed maturity date if the CD is set to renew (maximum of 5 years for amortization).
Another strategy is a CD bullet, in which you buy CDs that have the same maturity date at different times.
To offset this risk, bonds with long maturity dates pay a higher interest.
These investments provide investors with a predictable cash flow paid on a periodic basis, with a specified maturity date.
The current bond price may decline when rates rise, but the investor will receive his or her original investment back at the defined maturity date of the bond.
A one - time dividend rate increase will not extend the original maturity date of your certificate.
A CD issued by a bank or credit union typically has a fixed interest rate and designated maturity date so you'll know upfront how much money you'll receive.
The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
You can maximize the earning power of CDs by opening different certificates at varying maturity dates.
Returns are typically better than for savings accounts, because maturity dates allow the bank to invest the money for higher gains.
Medium - term investments may include various bonds with maturity dates between three and 10 years.
The mutual funds with their own long term maturity dates are also a very good investment idea, if you are not much of an expert.
These seek to provide regular income and known maturity dates like a bond, along with the benefits of an ETF such as diversification and exchange liquidity.
As to why to deal with futures: Well, there's just one contract per maturity date, not a whole chain of contracts (options come at different strike prices).
Yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.
At the shortest maturity date for money markets funds, they adjust immediately to the higher rate and in the vast majority of cases do not experience any loss of principal.
So the impact of falling rates may be smaller with a ladder than with a bullet strategy that targets a single maturity date or than with an investment in a small number of bonds.
The date on which the principal must be paid to investors, which is later than the expected maturity date.
The four ETFs are part of its plans to roll out nine such funds, and have maturity dates ranging from the end of 2012 and extending through to the end of 2016.
That means many of the loans made in 2014 and 2015 are either coming up on their first maturity date or already on extensions.
Depending upon your chosen maturity date, CDs may pay higher interest than money market deposit accounts.
Any earlier maturity dates will require you to purchase a new CD every three to six months to keep your ladder in place.
Unlike stocks and mutual funds, individual bonds have a definite maturity date.
Whole life insurance is simply an endowment policy whose maturity date has been extended to 100 or to 121, ages that only a relatively few people will achieve.
By doing this comparison the investor can look at various securities and compare their numbers to each other, as long as they all have the same maturity date attached to them.
If you think rates are likely to rise you can create a short - term ladder with frequent maturity dates.
A bond ladder is when you have a small number of bonds with successive maturity dates, usually ranging from one to five years.
Bonds that feature maturity date of a longer period will mostly require a cash flow discount rate that is higher and also features a risk of debt.
Individual bonds have the advantage of having a definitive maturity date, predictable income streams, and predictable tax consequences.
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