Sentences with phrase «payment by the bond»

When you divide the annual coupon payment by the bond's current price, you get its yield.

Not exact matches

Bonds, as measured by the Barclay's Aggregate Bond Index, have risen 5.8 % in 2014, including interest payments.
The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.
The Federal Reserve pumps money into the banking system by purchasing bonds and, when the system breaks down, makes enormous bailout payments to cover the bad debts run up by banks and other institutions to mortgage borrowers, businesses and consumers.
Typically they make periodic dividend payments based on the interest paid by the bonds held in the fund.
International payments are dominated by capital flows for direct investment, bonds and stocks, bank loans and speculation.
The actual calculation takes the present value of the remaining loan payments and multiplies this number by the difference between the loan's interest rate and the interest rate of comparable U.S. Treasury bonds.
Many make periodic dividend payments based on the interest paid by the bonds held in the fund.
Generally, municipal bonds» interest payments are tax - free on the federal level and if they're issued by your state, you won't have to pay state taxes.
The effect of financing these expenditures by bonds rather than taxation or by printing money resulted from creating a flow of payments from taxpayers to creditors.
Bonds and bond funds are typically classified by a credit rating which offers insight on their capital structure and ability to make timely payments.
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).
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.
An Insured Bond is a bond with interest and principle payments insured by a third paBond is a bond with interest and principle payments insured by a third pabond with interest and principle payments insured by a third party.
Duration is affected by maturity, the bond's coupon, and the time interval between payments.
Financiers receive payment by the interest from the bonds earned and any service fees deducted in kind.
The insurance companies have promised to make timely interest and principal payments on any bonds covered by insurance if Puerto Rico defaults, said Rob Williams, director of income planning at the Schwab Center for Financial Research.
The park district was able to redirect some money from the Bond and Interest Fund, which is managed by the county collector for debt payments.
The bond price at re-sale is determined largely by the risk of the issuer defaulting on payments, and the remaining term.
While the city's bond rating was downgraded to A +, the third - highest grade issued by S&P Global Ratings, last year, the agency improved the city's outlook to «stable» due to the city increasing non-property tax revenues, decreasing discretionary spending and securing $ 12.5 million from the state that wasn't an advance on payments the state owes the city for the Empire State Plaza.
Mayor Steve Noble said Tuesday, Feb. 14 that plans to install payment kiosks in nine city lots that currently offer free parking will be delayed by at least a month after the Common Council failed, for a second straight month, to approve a bond ordinance to pay for the new equipment.
Those include interest payments on bonds for school construction and renovation projects approved by voters.
The bond payments can be covered by revenues the county receives from a state settlement with Turning Stone casino, she said.
One of the key provisions calls for an annual bonding cap of $ 2 billion, promoted by Republicans concerned that the state has been borrowing too much money in recent years and can no longer afford the debt payments.
In the years of wrangling that followed, Congel often pushed to increase the amount borrowed through the bonds — and the amount of debt payments that would be reimbursed by state taxpayers.
E. Indebtedness contracted for school purposes, evidenced by bonds, to the extent to which state aid for common schools, not exceeding two million five hundred thousand dollars, shall meet the interest and the annual requirements for the amortization and payment of part or all of one or more issues of such bonds.
The city is expected to issue bonds, backed by the Savarino payments,
The new plan also offers a major bow to bondholders and Wall Street credit rating agencies, who might be worried that state bonds — with payments guaranteed by the state's income tax revenues — could face future payment issues if Albany is to rely less on income tax collections.
As we sit here right now under the law — that is the law on the bond resolution that we passed earlier this year that was given to us by County Executive Ed Day — the premium must be applied toward the payment of interest.
Lease payments over the years were enough to pay off the $ 3.6 million in bonds that were sold by Carnegie Redevelopment Corp. to finance the renovations, said William Fisher, Onondaga County deputy county executive.
Bond programmes are a form of «payment by results» in which providers are only recompensed if hitting pre-agreed outcome targets.
Lawmakers have kicked the can down the road for years by failing to make required payments that school districts both need and deserve, so now taxpayers will be on the hook for at least $ 1.5 billion (yes that is billion) in bank fees and interest on the bonds over the next 20 years.
This notice clause shall be inserted by first tier subcontractors in all their subcontracts and shall contain information pertaining to the surety that provided the payment bond under the prime contract.
While covered bonds are secured by a pool of assets, there is no guarantee that the cover pool will adequately or fully compensate investors in the event that an issuer defaults on its payment obligations.
Unsecured bonds are called debentures; their interest payments and return of principal are guaranteed only by the credit of the issuing company.
A bond with only one coupon payment left until maturity will be underpaying the investor by 0.25 % for only one coupon payment.
Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.
Unlike with stocks, there are organizations that rate the quality of each bond by assigning a credit rating, so you know how likely it is that you'll get your expected payments.
Because yield to maturity is the interest rate an investor would earn by reinvesting every coupon payment from the bond at a constant interest rate until the bond's maturity date, the present value of all the future cash flows equals the bond's market price.
By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.
By purchasing a municipal bond, an investor is lending money to the state or city in return for an interest payment.
Each year, you observe how much the Government increases the amount paid per bond and divide it by the Government's original (first year) payment per bond.
Lease rental bond: A municipal revenue bond that is supported by lease payments on a building, usually a building leased to a government agency.
For instance, going back to the $ 50,000 investment, you can guarantee a monthly income based upon the coupon payments from the laddered bonds by picking ones with different coupon dates.
They offer low - risk inflation protection because the bond's coupon payments increase with inflation, as measured by the Consumer Price Index.
By buying a short term bond, you significantly reduce your exposure to interest rate moves, but your credit risk (the risk that the issuer may default on its payments) is still there.
Bond interest is typically paid every six months, which is why the coupon payment for your example is $ 312.50; that's 6.25 % annual interest, divided by two because there are two interest payments each year.
Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).
You can get a higher payment than an annuity offers by investing in a portfolio of stocks and bonds.
This has been bad news for U.S. Treasury bond prices; the predefined stream of nominal coupon payments is being divided by a higher discount rate.
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