Yield that would be realized on a bond or other fixed income security if the bond was
held until the maturity date.
Soon the investor learns that when purchasing bonds they are also not obligated to hold the bond or
bonds until the maturity date.
Writing «covered» calls means we will be selling call options on an underlying security that we will actually hold
until the maturity of the options contract.
Our only hope is to wait the multiple
years until maturity or keep buying to lessen the increasing yield impact to original bond price paid when interest rates were lower.
Few investments are easier to understand than the humble guaranteed investment certificate: you invest a lump sum for one to five years and collect a fixed rate of
interest until maturity.
Offers a succinct payout when the premium payment periods runs out, as well as a consistent increase in
payouts until maturity and a reasonable payout at maturity.
Because bonds pay a fixed
payment until maturity, inflation will slowly eat away at the value of that payment.
For example, suppose an investor buys a tax - exempt bond — originally issued at par — in the secondary market at a price of 90 with ten years
left until maturity.
First of all, bond yield remains fixed, i.e. you will receive the same coupon over the entire
period until maturity.
The High Yield CD is a more traditional CD featuring a fixed term and interest
rate until maturity.
Market and interest risk are greater with zero coupon bonds, and interest is taxed in the year earned even though it is not
received until maturity.
The plan has a limited premium payment term and at the end of the term, the policy holder starts receiving tax - free guaranteed
income until maturity.
Tax on the interest is
deferred until maturity and may be eliminated if the proceeds are used to pay for a college education.
In a credit default swap, the buyer of the swap makes payments to the swap's seller
up until the maturity date of a contract.
Also, if the child stays in the plan
until maturity there is a top - up benefit, which is funded by those who leave early.
Figure 2 illustrates a bullet maturity structure, showing interest only payments throughout the
loan until maturity.
Because you can count on a fixed interest yield as long as you hold the
CD until maturity, CDs are a great product for secure wealth preservation and income.
Under this benefit, fixed guaranteed additions declared as percentage of sum assured would get added every year to policy after completion of premium
term until maturity of policy.
The limited amount of time
until maturity helps minimize the risk that rising interest rates will cause their value to decline.
Several of these products do not pay any
returns until maturity, which may not be suitable if you need regular income.
Then they tend to return to previous levels (whereas the price decline in an individual bond is locked in, and doesn't go
away until maturity).
When purchasing stripped coupons from a cash account, you must declare a portion of the interest every year, even if you do not receive this
amount until maturity.
This survival benefit is given after a few years from the start of the money back plan and
extends until the maturity of the money back policy.
It is always beneficial to read and understand the benefits you will have if you hold the policy throughout its tenure,
i.e. until maturity.
Phrases with «until maturity»