Sentences with phrase «principal value of your bond»

The return and principal value of bonds fluctuate with market conditions and when sold, bonds may be worth more or less than their original cost.

The return and principal value of bonds fluctuate with changes in market conditions.

Or the reason may be that the interest rates for bonds have gone down, thus increasing the principal value of bonds.

If you have already purchased a bond of any company, then the principal value of your bond remains the same, no matter the bond pricing goes high or low.

The Par Value or Face Value is a term used to define the principal value of each bond, which means the amount you had paid while purchasing the bond.

Odesser likes individual bonds because they reward the investor with an income stream and return of the principal value of the bond when it matures.

The return and principal value of bonds and bond fund shares fluctuate with changes in market conditions.

The return and principal value of bonds and mutual fund shares fluctuate with changes in market conditions.

The principal value of bonds fluctuates with market conditions.

If a guarantee of principal is not provided, the adjusted principal value of the bond to be repaid at maturity may be less than the original principal amount and, therefore, is subject to credit risk.

Not exact matches

«People purchase bond funds when they are looking for a safe way to get returns,» said Charles C. Scott, president of Pelleton Capital Management in Scottsdale, Ariz. «However, bond funds can be somewhat risky when interest rates rise, and the bond funds lose some of their principal value.»

Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.

We could take the $ 16 billion we have in cash earning 1.5 % and invest it in 20 - year bonds earning 5 % and increase our current earnings a lot, but we're betting that we can find a good place to invest this cash and don't want to take the risk of principal loss of long - term bonds [if interest rates rise, the value of 20 - year bonds will decline].»

Bonds, if held to maturity, provide a fixed rate of return and a fixed principal value.

Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as bonds» interest payments rise as well.

You should also note a bond's duration, which Vanguard explains «represents a period of time, expressed in years, that indicates how long it will take an investor to recover the true price of a bond, considering the present value of its future interest payments and principal repayment.»

The prices of bonds can fluctuate, and an investor may lose principal value if the investment is sold prior to maturity.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

Many individual bondholders believe the implications of interest rate fluctuations don't impact them because they'll receive their principal value on an individual bond if held to maturity.

David Levin, KIPP's harried principal, knows the value of that bond.

In other words, the current value of a bond is the present value of its interest payments plus its eventual principal repayment.

At 3 % inflation, the inflation adjusted principal of a bond or preferred stock falls to 74 % of its original value after 10 years.

In order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bond.

Using the above example (a bond that will pay $ 125 semi-annually for 10 years, with a final principal payment of $ 5,000 at the end of such ten year period), the discount rate that must be applied to each of those payments to produce a value of $ 4,628 is 6.00 %, compounded semi-annually.

Parity Parity price Participating preferred stock Participating (semi-fixed) Trusts Partnership Par value Passive income Pass - through security Payment date P / E ratio Penny stocks PHA Bonds Phantom income Pink sheets Placement Ratio Plan completion life insurance PN Point Portfolio income Position limits Positions book Pot Power of attorney Pre-dispute arbitration clause Preemptive right Preferred stock Preliminary prospectus Preliminary study Preliminary statement Premium Pre-refunding Pre-sale order Price to Earnings ratio Primary distribution Primary market Prime rate Principal Principal stockholder Principal transactions Private placement Private placement memorandum Private securities transaction Proceeds sale Production purchase program Profile Profit - sharing plans Program trading Progressive tax Project note Prospectus Prospectus delivery period Proxy Prudent Man Rule Public float value Public Housing Authority Bonds Public Offering Public offering price Purchaser's representative Put bond Put option Put spread

The optimal outcome is that you get paid principal & interest to the stated maturity from this bond that is deep in junk territory, CCC + / Caa1 - rated, where the proceeds of the deal don't increase the value of the firm, but are paid as a dividend to the equity holders.

Unlike stocks, if held to maturity, bonds generally offer to pay both a fixed rate of return and a fixed principal value.

While bonds come with a promise to repay you the principal at the time of maturity, the value of the bond between now and maturity can fluctuate.

For example, let's find the value of a corporate bond with annual interest rate of 5 %, making semi-annual interest payments for 2 years, after which the bond matures and the principal must be repaid.

The date when the issuer of a certificate of deposit (CD) or bond agrees to repay the principal, or face value, to the buyer.

Bond investments are subject to interest rate risk so that when interest rates rise, the prices of bonds can decrease and the investor can lose principal value.

The market price of a bond is the present value of all expected future interest and principal payments of the bond discounted at the bond's yield to maturity, or rate of return.

Bonds are contracts with fixed payments and inflation will erode the value of those payments (and the principal) as time passes.

The principal value of an inflation - indexed Treasury bond is stepped up along with the inflation rate.

The date when the issuer of a money market instrument or bond agrees to repay the principal, or face value, to the buyer.

In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due.

Like all bonds, the return and principal value of TIPS on the secondary market will vary with market conditions.

Event risk The risk that a bond's issuer undertakes a leveraged buyout, debt restructuring, merger or recapitalization that increases its debt load, causing its bonds» values to fall, or interferes with its ability to make timely payments of interest and principal.

Once the maturity date is reached, irrespective of the rise or fall in the current bond value, you will be paid your complete principal amount.

One important point to note as repetitively mentioned in this article is that when you choose to sell your existing bonds before the maturity date, there is no guarantee that you will get back the entire principal amount that you spent while purchasing the bonds and this is entirely dependent on the current value of the bond and the interest rate.

If you buy a bond at 100 % of the principal value and hold the bond until maturity, your return is equal to the interest you receive.

The bond investment grade is assigned after assessing the potential of the bond and the bond issuer and depicts how likely and reputed the bond issuer is when it comes to the interest (coupon) payment and also the repayment of the principal face value amount once the bond maturity period is completed.

The present value of the principal outstanding at the date of maturity is calculated at an interest rate differential discounted at the «Yield of Government of Canada Bonds» on the market with the equivalent term to maturity plus 0.90 %.

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.

Unlike a conventional bond, whose issuer makes regular fixed interest payments and repays the face value of the bond at maturity, an inflation - indexed bond provides principal and interest payments that are adjusted over time to reflect a rise (inflation) or a drop (deflation) in the general price level for goods and services.

When the bond matures, the investor receives the principal or face value of the bond.

Bonds can be traded on the open market and their principal value can fluctuate in large part due to changes in the interest rate environment or in the financial stability of the issuer.

The principal of the bond — its par value, commonly $ 1,000 per bond — is paid upon maturity along with the final coupon payment.

The AFR is useful for tax concepts such as Original Issue Discount (when issuers sell low - interest or no - interest bonds or loans at less than face value, attempting to recharacterize interest income as return of principal), various grantor trusts (e.g. GRATs), and so forth.

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.