Sentences with phrase «payments at the lower yield»

But your long - run return will be hurt because you will be reinvesting interest payments at the lower yield.

Not exact matches

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.

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).

The yield from the health REITs are pretty healthy assuming the distributions can continue at these paces while my DOV and ADM buys, though lower yielding, have much safer and more predictable dividend 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).