By doing this comparison the investor can look at various securities and compare their numbers to each other, as long as they all have
the same maturity date attached to them.
For example, if a U.S. Treasury security that matures in ten years has a yield of 5 % and a TIPS security with
the same maturity date has a yield of 3 %, the difference in yield, 2 %, is the TIPS spread.
The TIPS spread compares the yield of the Treasury Inflation Protection Securities (TIPS) and the yield of regular U.S. Treasury securities with
the same maturity dates.
If you invest in BulletShares, it's similar to investing in a basket of bonds that all have
the same maturity date.
Additional deposits have
the same maturity date as the initial deposit and become part of the principal.
Another strategy is a CD bullet, in which you buy CDs that have
the same maturity date at different times.
The reopened security has
the same maturity date and interest rate as the original security.
While variable rate loans, whether refinanced or not, tend to have starting rates that are often lower than fixed loan rates for
the same maturity date, these variable rates can change after you close on your loan — including the possibility to increase over the life of your loan.
A CD bullet strategy occurs when you purchase CDs at different times but choose
the same maturity date for each.
A security sold at a reopening has
the same maturity date and interest rate it had when originally issued.
Reopened securities have
the same maturity date and interest rate as the original securities, but a different issue date and usually a different price.
The reopened securities have
the same maturity date and interest rate; however, as compared to the original securities, the reopened securities have a different issue date (which creates a shorter overall term), and usually, a different purchase price.
For example, an investor can buy Province of Ontario «zero coupon» bonds for
the same maturity date in three different forms: 1) a «coupon» which is a stripped coupon payment from an Ontario bond; 2) a «residual» which is the stripped principal payment from an Ontario bond; and 3) an actual zero - coupon Ontario Global bond issue which was originally issued as a zero coupon «global» bond issue.