Sentences with phrase «over the life of the bond»

This differs from the structure of a typical bond, where an investor gets interest - only payments over the life of the bond and principal is returned at maturity.

This doesn't change over the life of the bond.

It's the time weighted average of all the coupons and final payment you'd receive over the life of the bond.

When it matures, you receive the full face amount which equals your initial investment plus accumulated interest compounded over the life of the bond.

With most types of bonds the interest payments and the amount you receive at maturity are both fixed over the life of the bond.

This rate doesn't vary over the life of the bond.

If the issuer can buy back their bonds before the maturity date, this will affect any interest payments that you expect to get over the life of the bond.

A promise to pay taxable or tax - exempt interest at a stated «coupon» rate in defined intervals over the life of a bond.

Even when using bond index total returns, the current starting bond yield has been highly accurate in predicting returns over the life of the bonds.

However, what the market is willing to pay to participate in the interest payable does change over the life of the bond.

Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.

But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.

Assuming investors hold the JGB to maturity in 2056, they will achieve a total return of just 2.96 percent over the life of the bond, not accounting for inflation or taxes.

New York has been advance refunded nearly $ 10 billion state - support debt, creating $ 1.1 billion in savings over the life of the bonds.

That's because the difference between your purchase price and the bond's face value is amortized over the life of the bond and taxed annually as though it were interest.

You need to tell your broker beforehand whether you elect to accrue the discount annually over the life of the bond.

The first graph below shows that the inflation factored into RRbond prices is the long - term inflation expected over the life of the bond, not the volatile annual CPI heard in the media.

It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.

The actuary might say that you estimate the default loss rate over the life of the bond, and the required incremental yield that the marginal holder of the bond needs to fund the incremental capital employed.

Both their face value and interest payments are pegged to the Consumer Price Index and adjusted twice a year, which means you're guaranteed to maintain your purchasing power over the life of the bond.

The straight - line method amortizes this discount equally over the life of the bond.

Floating - rate bonds have variable interest rates that adjust periodically over the life of the bond based on a predetermined formula or a benchmark index.

That means that the closer you get to paying that tuition payment, the safer you will feel knowing that your bond will come due at maturity and you will get your investment back in full including all interest payments over the life of the bond (assuming no default).

Bonds claim to provide a specified rate of return over the life of the bond, which allows bondholders to anticipate how much money they will make and how steady their stream of income will be.

Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.

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.

This amount never changes over the life of the bond.

The government bond model uses the initial interest rate as a reasonable expectation for return over the life of the bond.

It is estimated that the Control Board can save $ 800,000 - $ 1.1 million over the life of the bond.

Although the OID is treated as tax - exempt to the holder, it will increase the holder's tax «basis» in the bond (over the life of the bond) for purposes of calculating gain or loss if the holder disposes of the bond prior to maturity.

That loss can be taken at maturity or it can be spread out over the life of the bond.

That profit can be taxed at maturity (or when it's sold) or it can spread out over the life of the bond or however long you own it.

As with most fixed - income securities, zero coupon bonds offer investors a high degree of safety when held to maturity and the opportunity to earn compound interest over the life of the bond.

Thus, investor A will receive $ 5,000 in total interest payments over the life of the bond, while Investor B will receive only $ 4,000.

People invest their principal in bonds and receive a stated interest rate (coupon) over the life of the bond and are given the promise of having their principal returned at maturity.

Even when using bond index total returns, the current starting bond yield has been highly accurate in predicting returns over the life of the bonds.

The rate does not change over the life of the bond.

With most wrap agreements, once a payment is received or made by the wrapper, the wrapper enters into a countervailing transaction with the pool to pay or receive, respectively, a stream of payments over the life of the bond that was wrapped equal to the present value of the initial payment when the bond was tapped.