If fund providers could combine lower costs and diversification with the ability to
set a maturity date bond investors could better plan for the future and lower their risks.
Not exact matches
«In a
bond mutual fund, you're invested in a pool of
bonds with no
set maturity date, which means more risk if interest rates rise.»
Blackrock's iShares unit recently came out with four ETFs that will focus on corporate
bonds and have
set maturity dates of 2016, 2018, 2020 and 2023.
Callable and puttable The issuer of a callable corporate
bond maintains the right to redeem the security on a
set date prior to
maturity and pay back the
bond's owner either par (full) value or a percentage of par value.
Yield Curve: A curve that shows the relationship between yields and
maturity dates for a
set of similar
bonds at a given point in time.
The
date on which the
bonds will be paid off is called the
maturity date and may be
set at a few years out or, believe it or not, for as long as 100 years away.
a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate
set at the time the
bond is issued; generally have a face value of $ 1,000 and a specific
maturity date
Bond funds differ from individual bonds in that most bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protect
Bond funds differ from individual
bonds in that most
bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protect
bond funds and ETFs have no
set maturity date for the repayment of principal, and offer somewhat less principal protection.
When you invest in
bonds, you are essentially lending money to the
bond issuer, who promises to pay you interest — called the Coupon — and repay the principal by a
set date — when the
bond reaches
maturity.
We often recommend clients purchase
bonds in a
bond ladder, which is a collection of
bonds that have different
maturity dates set to match their future cash flow needs.
Yield curve is a line that plots the interest rates, at a
set point in time, of
bonds having equal credit quality, but differing
maturity dates.
A yield curve is a line that plots the interest rates, at a
set point in time, of
bonds having equal credit quality but differing
maturity dates.