Sentences with phrase «payments 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.

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.

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.

Not exact matches

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.

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

A large portion of your premiums payments will be invested in the insurance company's investment fund in whatever asset class you prefer (stocks, bonds, mutual funds, money market funds, etc.) Over time, this has the chance to generate a much larger cash value in your insurance account than a traditional whole life policy does.

At some point in your life, you may have had to make a series of fixed payments over a period of time — such as rent or car payments — or have received a series of payments over a period of time, such as interest from bonds or CDs.

Investing in bonds generally provide a high degree of safety with regular, predictable, scheduled payments over the life of the security.

Study participants were asked five questions covering aspects of economics and finance encountered in everyday life, such as compound interest, inflation, principles relating to risk and diversification, the relationship between bond prices and interest rates, and the impact that a shorter term can have on total interest payments over the life of a mortgage.

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

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.

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.