Sentences with phrase «rate over the life of the bond»

Not exact matches

But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.

Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.

After issuing bonds paying interest at, say, 5 percent, they would invest the proceeds and hope that they could earn a higher rate of return over the life of the bond.

Although no corporate bond is entirely risk free, and may sometimes even result at a loss because of changing market conditions, highly - rated corporate bonds could reasonably assure a steady income stream over the life of the bond.

On the other hand, a variable interest rate is not fixed over the life of the loan, and is typically tied to a financial index, which itself is a measure of how well stocks, bonds, and other market conditions are doing.

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 assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.

Thus, if interest rates remain constant, the bond will rise in value over most of its life as its duration shortens.

The total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and then reduced to an average annual rate.

If you live below your means, start investing early, continue to invest a portion of every paycheck, max - out on tax - deferred accounts, and put your money in the stock market which has higher overall rates of returns over time than bonds or CDs, you can become a millionaire too without starting your own business.

If you live below your means, start investing early, continue to invest a portion of every paycheck, max - out on tax - deferred accounts, and put your money in the stock market which has higher overall rates of returns over time than bonds or CDs, you can become a millionaire too...

If you own a 10 - year bond, rates could rise multiple times over the life of the investment, pushing the security's price down with each increase.

Bonds claim to provide a specified rate of return over the life of the bond, which allows bondholders to anticipate how much money they will make and how steady their stream of income will be.

A whole life contract over that same period of time will generate a 4.3 % (approximately — don't kill me here) rate of return and does not share any taxable treatment that is shared with the treasury bond.

According to a Lamar University study, the rate of return over time on an indexed universal life policy was higher than some other investment vehicles, such as Treasury bonds.

Of course, the bond interest might not quite be enough to cover the traditional LTC premiums right now (and therefore deplete principal slightly), but it will be more than enough once rates rise, which again seems like a reasonable «bet» for someone who still has a 10 - 20 + year time horizon for long - term care and retirement needs (and over that time horizon, the client could have generated an amount equal to the hybrid life / LTC death benefit just with normal growth!).

Alternatively, if you prefer the probability of under performance over the guarantee of a fixed interest rate, a variable life insurance policy with sub-accounts invested in equities and bonds may possibly make more common sense for you.