Sentences with phrase «pay bond interest»

Not exact matches

** From 2017, in accordance with IAS 33, the earnings per share and diluted earnings per share are calculated based on net income (Group share) less the net - of - tax interest paid to bearers of subordinated perpetual notes (hybrid bonds).

Issuing bonds is one of the most routine things that happens in today's financial system; governments and companies get a sum of money today and pay interest on it over time, before paying back the principal at some agreed - upon future date, when the bond «matures.»

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.

It's true that the government will still collect revenue far in excess of what it needs to pay interest on Treasury bonds, only about 7 percent of total spending.

Convertible bonds are securities that pay interest, but give the bondholders the right to convert them to equity shares; they're basically a way to bet on the growth potential of a company without taking the risk of buying common shares.

A well - diversified portfolio of stocks and bonds is paying dividends and interest between 3 % and 4 % annually.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

A bond fund's total return is the sum of the interest paid plus changes in bond prices.)

When you buy bonds from a corporation, government or other entity, you're lending money to be paid back with interest at a specified time.

That has Deutsche Bank wondering if there is likely to be a wave of companies failing to pay interest on their bonds.

When you unload those bonds, you pay ordinary income tax on the interest you earned.

Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.

As well, there is some concern around how an interest rate rise will affect these stocks, most of which pay dividends and thus compete with bonds for investors» money.

an interest - bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency / GSE

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

Interest rate risk is simply the fact that bonds fluctuate in the price the market is willing to pay for them based on changes in interesInterest rate risk is simply the fact that bonds fluctuate in the price the market is willing to pay for them based on changes in interestinterest rates.

The biggest disadvantage of buying a Treasury bond is that the interest rate could rise during its term, which means your money might be tied up in an investment that pays 2.75 percent interest when you could be getting 4 percent or 5 percent — or more.

For example, if you hold a bond paying 5 % interest and market rates rise to 6 %, investors would need to pay less for your bond to be compensated for the lower than market rate.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

Under the contract, National pays HXT the return of the TSX 60 plus its dividends while HXT pays National the interest from its bonds.

Private independent rating services such as Standard & Poor's, Moody's Investors Service and Fitch Ratings Inc. provide these evaluations of a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion.

For example, they could seek to buy resilient bonds that pay decent coupons with limited price downside while simultaneously shorting fixed - income securities that look vulnerable when interest rates and inflation expectations trend higher.

You'll still get 2.75 percent interest and your $ 10,000 when the bond matures, but you will have paid less for the bond.

When you buy government bonds, you are loaning money to the government, which agrees to pay you back with interest.

As I have covered previously, when you own an individual bond, you invest for a set period of time and get paid interest for the duration or maturity length of the bond.

Future generations should help pay for them and that's why governments today should be issuing 10, 30, or even 50 year bonds at currently ridiculously low interest rates to finance needed infrastructure.

The bill would also allow state and local governments to issue Build America Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projBonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projbonds that finance government works projects.

Typically they make periodic dividend payments based on the interest paid by the bonds held in the fund.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

Definition: An unsafe bond that pays a high interest rate (sometimes as high as 15 - 20 %!).

These securities are known as Original Issue Discount (OID) bonds, since the difference between the discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.

The interest generated by bond funds is typically calculated daily, but paid out to investors monthly.

The bonds used as the new collateral will need to generate enough interest to cover all future payments on the loan; otherwise, you may have to pay a penalty.

Like other bonds, they promise to pay interest on a regular basis and have a stated maturity date when they return par.

The government is called on to bail them out by issuing bonds, and to pay the interest charges either by raising taxes or cutting back spending programs.

Bond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princiBond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princibond's performance is lessened if that issuer should fail to pay interest or principal.

Payable Date: Date on which a declared stock dividend or a bond interest payment is scheduled to be paid.

While it decided not to, the Fed did say it expected «further gradual» rate increases would be justified — and there's broad consensus that it will raise rates (which can affect the amount banks charge borrowers, as well as interest paid on bonds) at least three times this year.

Higher rates also make investments like bonds, which pay interest, more compelling to investors.

Interest paid on a bond is constant.

It represents the annual interest rate, usually paid in two installments every six months, although some bonds pay annually, quarterly, or monthly.

Zero - coupon Zero - coupon corporate bonds are issued at a discount from face value (par), with the full value, including imputed interest, paid at maturity.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category.

You use the money to pay off the junk bond holders at high interest.

Step - down * Interest on step - down securities is paid at a fixed rate until the call date, at which time the coupon decreases if the bond is not called.

• 1/2 of self - employment tax (self - employed individuals are required to pay «payroll» taxes that an employer would otherwise take; these extra taxes can be deducted from AGI, but are included in MAGI) • Student loan interest • Tuition and fees deduction • Qualified tuition expenses • Passive income or loss • Rental losses • IRA contributions and taxable Social Security payments • Exclusion for income from U.S. savings bonds • Exclusion for adoption expenses (under 137)

If the government did stop paying interest on its outstanding bonds, those bonds would most likely become less attractive.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment.