Sentences with phrase «repaid at maturity»

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.

Commercial paper is usually repaid at maturity by the issuer from the proceeds of the issuance of new commercial paper.

A type of investment that offers a set rate of interest for a specified amount of time, with the principal repaid at maturity.

The principal repaid at maturity is either the adjusted principal or the original one, whichever is greater.

Then the entire principal balance is repaid at maturity.

With debt financing, a company is required to pay interest throughout the term of the loan with principal repaid at maturity.

Not exact matches

difficult or impossible to refinance debt that is maturing in the near term, some of our portfolio companies may be unable to repay such debt at maturity and may be forced to sell assets, undergo a recapitalization or seek bankruptcy protection.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

This differs from stock as it doesn't provide ownership in the company, but acts as a debt the company will have to repay at the time of maturity.

The issuing company promises to pay a fixed rate of interest («coupon») for a fixed period at regular intervals until maturity, upon which it will repay the original loan or capital back to you, the investors.

The government promises to pay a fixed rate of interest («coupon») for a fixed period at regular intervals until maturity, upon which it will repay the original loan or capital back to you, the investors.

The word «balloon» implies that a balance at the end of the term due upon maturity must be repaid or refinanced.

At maturity date, the full face value of the bond is repaid to the bondholder.

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.

At the maturity of a reverse mortgage loan, the lender will have a claim against your property and you or your heir (s) may need to sell the property to repay the loan, or repay the loan from other assets in order to retain the property.

To some extent, this is an understandable retirement investing strategy, since bonds can provide steady income and a guarantee to repay their principal at maturity.

In exchange, the company or government promises to repay you (the bondholder) the amount you invest, plus interest, at a set point in time called a maturity date.

The bond is a debt security, under which the issuer owes the holders a debt and (depending on the terms of the bond) is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date.

The issuer typically makes regular interest payments, and repays the full investment at the end of a set period of time, at which point the bond typically reaches «maturity» and the investor's principal is returned, plus any accrued interest.

Credit quality1 A bond's credit quality indicates the likelihood that its issuer will fulfill its obligation to pay the interest owed and repay the principal at maturity.

Debt securities bought by retail investors do have repayment risk because their value is determined by the expectation that the issuer repay the principal at maturity.

A bond's maturity is the date at which the bond issuer legally agrees to repay your principal (or initial investment).

Bonds are considered less risky than stocks because bond prices have historically been more stable and because bond issuers promise to repay the debt to the bondholders at maturity.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

The main advantage of bond investing is that in almost every case, the principal amount that you invest while buying a bond is completely safe and repaid back to you at the end of the maturity period.

The maturity date defines the lifespan of an interest - bearing security and designates the time at which the issuer (borrower) must repay the principal and interest to the holder (lender).

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.

The invested funds (principal) are repaid at the end of the term (maturity) and are usually secured by tangible property.

At the maturity of a fixed income investment such as a bond, the borrower is required to repay the full amount of the outstanding principal plus any applicable interest to the lender.

Issuers generally pay a fixed, variable, or floating interest rate, and must repay the amount borrowed at maturity.

Once the maturity date has been reached, the lender expects the balance to be repaid in full, no matter how high or low that balance might be at the maturity date.

Similarly, if you want to minimize the price fluctuation risks, you can hold individual bonds to maturity, at which time you are repaid the face value of the bond.

FICO intends to use the net proceeds from this offering to repay certain indebtedness outstanding under our existing unsecured revolving credit facility, including, but not limited to, indebtedness borrowed under our existing unsecured revolving credit facility drawn to repay all of our outstanding 7.18 % Series D Senior Notes due 2018 at maturity.

Lending your money to a borrower who pays you interest for the use of your money and repays the principal (sometimes called the face value) on demand or at maturity.

At maturity, if the notes have not yet been converted or repaid, note holders will receive cash in an amount equal to the original principal amount plus 10 % annualized return.

At the maturity of a reverse mortgage loan, the lender will have a claim against your property and you or your heir (s) may need to sell the property to repay the loan, or repay the loan from other assets in order to retain the property.

Instead, it is repaid all at once at loan maturity.

Bond: Evidence of debt in which the issuer promises to pay bondholders a specified amount of interest and to repay the principal at maturity.