Sentences with phrase «same yield to maturity»

Now consider a discount bond that pays a coupon of 2 % and has the same yield to maturity of 3 %: now, in addition to the interest payments, you'd net a 1 % capital gain at maturity, and your total pre-tax return would again be 3 %.

Not exact matches

Fed rates most directly affect yields on shorter - maturity bonds, and I don't expect yields on longer maturity bonds to rise in the same way or to the same degree.

Finally, tax - exempt bonds are offering compelling yields relative to taxable instruments of the same maturity, based on my analysis of the Bloomberg data.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

At the same time, the continued lack of fixed income supply around the world, especially in longer - maturity debt, should continue to keep yields contained.

Its coupon and its yield to maturity are always the same.

If both bonds are held for the full four years, their total return will be the same: in other words, both now have a yield to maturity of 3 %:

The index's yield - to - maturity tightened by 15 bps to 0.24 % in the same period.

Yield to maturity assumes that all interest payments are received from the date of purchase until the bond reaches maturity, and that each payment is reinvested at the same rate as the original bond.

Alternatively, a holder can elect to accrue market discount using the same method that is used for OID (i.e., using a constant yield - to - maturity method).

As we went to press, top yields for a handful of five - year GICs were around 3 %, compared with less than 1.5 % on federal bonds of the same maturity.

Again, the yield to maturity of XCB is virtually the same as the comparable RBC fund: in this case, 3.25 % versus 3.21 %.

You won't see the same returns as long - term laddering, but at least you get access to your money, the best current CD rates for low maturities, and a better yield than a savings account.

The yield - to - maturity of the S&P China Bond Index tightened by 67 bps to 3.63 % in the same period.

Contrarily, as part of the S&P Global Developed Sovereign Inflation - Linked Bond Index that measures the performance of the inflation - linked securities market, the S&P Japan Sovereign Inflation - Linked Bond Index rose 3.84 % YTD, see Exhibit 3, and its yield - to - maturity has also shifted from negative territory to 0.648 % in the same period, which is a level last seen in early 2012.

The yield - to - maturity of the index was 4.96 % on the same date, up 15 basis points from the beginning of the month's 4.81 %.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

Yield - to - call is the same calculation based on the total coupon interest payments remaining between now and the first call date (rather than the maturity date) as well as the difference between today's market value (price) and the call price.

Except for fixed - rate certificates of deposit, which earn the same interest rate through maturity, the interest rate and annual percentage yield (APY) on deposits can change as often as daily, at our discretion, without prior notice to you.

If you evaluate municipal bonds by the traditional criterion, the yield ratio of municipal bonds to Treasuries of the same maturity, munis are incredibly cheap: All along the yield curve, munis yield, in absolute terms, anywhere between 150 % to even 300 % of Treasuries.

It wouldn't be that big of a deal to pay a 1 - 2 % early withdrawal penalty to redeem a CD early to buy stocks that had fallen 30 % or more in value — you'd make that up in a year or two, compared to Treasuries of the same maturity, due to the higher yield of CDs of the same maturity.

In other words, if interest rates stay the same, you can expect CLF to post capital losses because its cash yield is higher than its yield - to - maturity.

It's obvious that CDs have done and will do better than Treasuries of the same maturity if held to maturity, since the yield premiums have been very rich most of the time over the last 6.5 years, and currently are quite good.

Good direct CDs seem to be the best ticket for that, considering that my average yield premium over Treasuries of same maturity is over 1 percentage point (e.g., CD at 3 % if Treasury yield at 2 %) for CDs bought over the last 6.5 years.

Considering only taxes, the investor will prefer a retail CD to a U.S. Treasury security of the same maturity when the aftertax yield on the CD is greater than the yield on the Treasury.

«We've designed each Treasury FITR portfolio to match the performance, before fees and expenses, of a consistent - maturity Ryan Treasury Index which allows investors to stay at the same point on the yield curve without having to adjust their own portfolios,» said Gary Gastineau, managing director of ETF Advisers and interview guest earlier this year.

At the same time, if yields fall by 1 % then your 2 % yielding bond will rise in price by about 10 % and the person who buys that bond one instant after you will earn a lower yield to maturity.

The yield on 10 - year U.S. Treasuries fell one basis points to 2.94 percent on Monday, while the rate on same - maturity Canadian bonds fell the same amount to 2.32 percent.

You'll still get your 2 % per year, but if you'd bought that bond one instant after if fell in price then you'd own the exact same high quality instrument with a higher yield to maturity than the 2 % yielding bond.

In other words, how much taxable yield you'd need to get on a municipal bond to end up with the same amount of money as you'd get on a federally - tax bond of the same maturity and credit quality.

In other words, how much federally - tax yield you'd need to get on a municipal bond to end up with the same amount of money as you'd get on a taxable bond of the same maturity and credit quality (after paying the taxes due).

At the same time, we will assume that TIPS continue to yield 1.8 % to maturity throughout the entire 40 years.

With a callable security, the investor's compensation for selling the option is reflected in a higher yield and lower price as compared to a similar bullet security with the same maturity.

Real Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matYields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matyields are high or low relative to the real return on nominal bonds of the same maturity.

Yield Maintenance is a prepayment penalty that, in the event the borrower pays off a loan before maturity, allows the lender to attain the same yield as if the borrower had made all scheduled mortgage payments until matuYield Maintenance is a prepayment penalty that, in the event the borrower pays off a loan before maturity, allows the lender to attain the same yield as if the borrower had made all scheduled mortgage payments until matuyield as if the borrower had made all scheduled mortgage payments until maturity.