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.
It's the time weighted average of all the coupons and final payment you'd
receive over the life of the bond.
Not exact matches
With most types
of bonds the interest payments and the amount you
receive at maturity are both fixed
over the
life of the
bond.
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.
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.