Sentences with phrase «nominal value of the bond»

This means that holding these bonds until maturity will mean they will only receive half of the original nominal value of the bond, and that is assuming no further write downs occur.

In other words, bond holders suffered a 50 % write down in the nominal value of their bonds.

Not exact matches

Bonds may not offer tremendous nominal value, comparatively speaking, in the current market, but they do generally offer peace of mind and stability which, for some, may be more important than they currently realize.

While a money market fund or deposit account will protect the nominal value of your cash, you are missing out on a chance to grow it with interest from bonds or capital appreciation from stocks.

While a money market fund or deposit account will protect the nominal value of your cash, you are missing out on a chance to grow it with interest from bonds or capital appreciation from stocks.

For example, a bond with a face value of $ 1,000 that pays $ 100 per year has a nominal yield or coupon rate of 10 %.

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Second, it meant (and means) that investors are finally receiving at least a nominal rate of interest on their cash equivalents and short - term bond holdings going forward — a welcome change for patient value investors.

Of course, even if rates climb from 2 % to 10 %, assuming that you keep the bond to maturity and assuming that there is no applicable credit event, it will still pay out the same $ 1000 at maturity and the same $ 20 / year (2 % of nominal value $ 1000, p.a.Of course, even if rates climb from 2 % to 10 %, assuming that you keep the bond to maturity and assuming that there is no applicable credit event, it will still pay out the same $ 1000 at maturity and the same $ 20 / year (2 % of nominal value $ 1000, p.a.of nominal value $ 1000, p.a.).

One way to analyze the relative value of inflation - linked bonds versus nominal bonds is to compare the implied break - evens priced between the two against near - term inflation expectations.

Asset location without adjusting for the tax effects of your RRSP: split your asset allocation up, using only nominal values (i.e. treat a dollar of bonds in your RRSP the same as a dollar of bonds in your TFSA or non-registered).

For instance, a bond that trades at $ 102.50 means that for each $ 100 of nominal value, you pay $ 2.50 more than the initial issuance price.

So, if you purchase a bond with a nominal value of $ 10,000 and a 3 % interest rate, you will receive a payment of $ 150 every six months.