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 %.
Naked option NASD NASDAQ National Association
of Securities Dealers National exchanges National Market System National Medallion Signature Guarantee National Securities Clearing Cooperation (NSCC) National securities exchange NAV Negotiable Negotiated market Negotiated underwriting Net Asset
Value Net capital Net capital ratio Net interest cost Net investment income Net revenue pledge Net proceeds Net worth New issue Nine -
bond rule NMS No - load fund
Nominal quote
Nominal yield Non-cumulative Nonparticipating preferred stock Nonrecourse loan Non-systematic risk Non-tax-qualified annuity Notice
of public offering Notice
of sale NYSE NYSE Composite Index
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.