Sentences with phrase «of bond coupons»

Renters» rent obligations are reminiscent of bond coupons.

The only variable is the amount the analyst chooses to discount the risks of the bond coupon (interest) not being paid and the cost of capital.

Not exact matches

Under this hypothetical policy, governments transfer money directly to taxpayers to encourage spending, a handout funded by issuing bonds with a coupon of zero and no maturity date, which central banks buy.

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

In March 2018, SES secured an eight - year EUR 500 million Euro Bond at a low annual coupon of 1.625 % which allows SES to refinance an upcoming debt maturity at more favourable terms.

For the purposes of the EPS calculation only, the net profit for the year attributable to ordinary shareholders has been adjusted to include the coupon, net of tax, on the perpetual bonds.

«But due to the low coupons prevailing, even a gradual rise in yields will result in negative returns on a wide range of government bonds over the coming quarters.»

Consequently, net profit attributable to SES shareholders was EUR 98.2 million (Q1 2017: EUR 128.4 million) and earnings per share was EUR 0.19 (Q1 2017: EUR 0.26) after deducting the coupon (net of tax) for the group's hybrid (perpetual) bonds.

But the simple fact is she just doesn't know, because she doesn't know when the effect of a higher coupon has a more powerful effect on a bond's price than does a shorter term.

First, he believes that an investor in a low - cost S&P index fund who reinvests all dividends will do better — very likely substantially better — than an investor who buys a 17 - year government bond and reinvests all of his coupons in the same instrument.

Obvious possibilities include bank certificates of deposit, zero - coupon bonds (especially good for college - tuition savings), short - to medium - term government bonds, and top - rated corporate bonds.

a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc..)

If interest rates rise, market prices of existing bonds will typically decline, despite the lack of change in both the coupon rate and maturity.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

For example, you might pay $ 9,717 instead of $ 10,000 for your 30 - year bond, which would give you a yield of 2.89 percent instead of the stated coupon yield of 2.75 percent.

Investors in Treasury notes (which have shorter - term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

Other Treasury securities, such as Treasury bills (which have maturities of one year or less) or zero - coupon bonds, do not pay a regular coupon.

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

A 10 - year bond with a 10 % coupon, however, only has a duration of about 6.75 years.

Certainly, the effective maturity of a 30 - year zero coupon bond is 30 years.

At that time, the 10 - year Treasury bond had a duration of just 6 years (due to the very high coupon payments and yield - to - maturity available), while the S&P 500 had an extraordinarily low duration of just 16 years.

But due to interest payments, the effective maturity of 30 - year bond with a 6 % coupon is closer to just 13 years.

The holder of the convertible bond is willing to accept a lower coupon for the potential upside appreciation of the security.

On 15SEP2016 I bought two of the 4.750 coupon 1MAY2021 maturity Rent A Center (RCII) bonds at 85 cents on the dollar.

Floating - rate * The coupon on a floating - rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the price of a commodity.

If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in theCoupon: The average coupon is the weighted average coupon rate of all the bonds in thecoupon is the weighted average coupon rate of all the bonds in thecoupon rate of all the bonds in the fund.

Fixed - rate coupons The most common form of corporate bond is one that has a stated coupon that remains fixed throughout the bond's life.

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

debt obligations of the U.S. Government with maturities of 10 years or longer; coupon interest for Treasury bonds is exempt from state and local taxes, but is federally taxable; interest income may also be subject to alternative minimum tax

It was problematic because many of those bonds were purchased a time when interest rates were much higher and enjoyed far fatter bond coupons than anything then available on the market.

estimate of annual income from a specific security position over the next rolling 12 months; calculated for U.S. government, corporate, and municipal bonds, and CDs by multiplying the coupon rate by the face value of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate bonds (including treasury, agency, GSE, corporate, and municipal bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed - end funds, and certain types of bonds

the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID

The biggest detraction to investing in bonds today is the relatively low rate of coupon (interest) one receives.

Coca - Cola placed an $ 8.5 billion ($ 9.5 billion) bond issue in February with an attractive coupon of 0.75 %.

You get all of your interest (TAX FREE) and the principle returned at maturity (unless you buy Zero - Coupon Bonds that just grow until maturity).

«When I purchased long - term zero - coupon bonds in the early 1980's at market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»

Buffett and the counter-party to his bet, Protege, funded their portion of the prize by purchasing zero - coupon bonds..

Plenty of investment - grade credit bonds suspended coupon payments in the Depression, transiting directly from A to D rating without even making a pit stop at a C junk rating.

Consider, for simplicity, a 30 - year zero - coupon bond with a face value of $ 100.

The on - the - run 30 - year bond has a coupon of 2.25 %, which is about as low as you can get, which means lots of duration.

Bonds pay investors interest in the form of coupon payments and offer full principal repayment at maturity.

By buying and holding bonds until maturity, investors can also buy bonds with coupon payments and maturities that meet specific income needs, as they know exactly how much they are going to receive over the life of the bond.

According to Roger Ibbotson's data, the coupon return has made up 90 percent of intermediate bonds total returns, and expected bond returns and starting yields have tracked well.

The 10 year treasury rate is the yield to maturity (not the coupon rate) of the most recently auctioned 10 year treasury bond.

Fortunately, with coupons of 7.5 percent, bond returns were still positive during this period, even if muted.