Sentences with phrase «pricing of a particular bond»

So, the pricing of a particular bond may also vary.

Not exact matches

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson

When used together, duration and convexity offer a better approximation of the percentage of price change resulting from a particular change in a bond's yield than using duration alone.

YTP is similar to YTC, except for the fact that the holder of a put bond can choose to sell back the bond at a fixed price on a particular date.

Historically an alternative practice of issuance was for the borrowing government authority to issue bonds over a period of time, usually at a fixed price, with volumes sold on a particular day dependent on market conditions.

The price of a bond is based on its interest rate, or yield, at any particular time.

Many factors affect the value, or price, of a particular bond, but the two big influences are 1) future inflation expectations (as reflected in general interest rates) and 2) the risk of Corp A «defaulting» — not meeting its obligation to make each year the $ 50 interest payment and, eventually, repaying the $ 1,000 bond principal.

I expect that we'll be inclined to increase our exposure in long - term bonds on any substantial price weakness and upward yield pressure, but that inclination will be gradual and proportionate - I don't think it's useful to think of any particular level on say the 10 - year or the 30 - year Treasury as a «buy.»

1) Most other investments — talking about stocks, bonds, mutual funds, etc — do not fix the cost basis and selling price on the value of the commodity on only two particular days.

It can have severe effects on the price and prospects of a particular bond if it is downgraded from «BBB,» which is investment grade, to «BB» which is below investment grade.

There may be several reasons for the difference between the market price and the face value of particular bonds: see Table 3.

The three main risks that they carry are — credit risk where the bond issuer fails to make timely interest payments and repay the principal amount on maturity; liquidity risk where the fund manager is not able to sell his paper due to lack of demand for a particular security and; interest rate risk where a change in interest rate changes the price of the bond.