Sentences with phrase «value of one's bond»

When you invest in a bond and hold it to maturity, you will get interest payments, usually twice a year, and receive the face value of the bond at maturity.

At any given time, a bond ETF can trade at a discount or premium to its net asset value — the current value of the bonds in the portfolio.

This is the most important feature of this sheet - calculating the resulting market value of a bond portfolio assuming interest rates change.

Value of bond fund has inverse relationship with the rate of interest.

Credit risk: As a bond investor, your objective is to receive regular coupon payments and the face value of your bond at maturity.

If you have already purchased a bond of any company, then the principal value of your bond remains the same, no matter the bond pricing goes high or low.

The yield - to - maturity is the interest rate — known as a discount rate — that sets the present value of the bond equal to its current price.

Bonds pay regular interest, and the investors get the principal or par value of the bond back on maturity.

Alternatively, if interest rates go down, the current value of your bond increases on the open market to make it appear as if it is yielding a lower rate.

If interest rates rise, and the market value of your bond falls, you will not feel any effect unless you change your strategy and try to sell the bond.

When you buy a bond, the issuer promises to pay the face value of the bond when it becomes due, or when it reaches maturity.

Therefore, if the stock market falls, the market value of a high yield bond is more likely to fall than the market value of a bond with higher credit quality.

If the total value of a bond offering is too small to justify the cost of having it rated, a bond may be issued without a rating.

This may cause the underlying value of the bond to fluctuate more than other fixed income securities.

Less trading volume results in larger bid / ask spreads, and thus bond funds trade at premiums and discounts to the actual value of the bonds backing up the fund.

If rates go up, the resale value of my bond will go down, and vice versa.

Government bonds are considered one of the safest bond investments as the face value and coupon value of your bond will always be preserved and paid to you in correct time by the government.

This means that holding these bonds until maturity will mean they will only receive half of the original nominal value of the bond, and that is assuming no further write downs occur.

The capital value of a bond can rise or fall depending on the current interest rate and the amount of interest accrued since the last coupon payment.

The market value of a bond changes over time as it becomes more or less attractive to potential buyers.

It's not necessarily that it's going to fall 5 %, because interest rates are dynamic, they change, they move, values of bonds move.

While face value of a bond provides for a guaranteed return, the face value of a stock is often a poor indicator of actual worth.

With a bond, you know you'll receive the face value of the bond upon its maturity (unless the company is in exceptional distress).

The Principal is the amount borrowed, the original amount invested, or the face value of a bond [2].

For example, the intrinsic value of a bond is easier to calculate than its corresponding equity stock.

Or the reason may be that the interest rates for bonds have gone down, thus increasing the principal value of bonds.

The present value of the bond will fluctuate widely with changes in prevailing interest rates since there are no regular interest payments to stabilize the value.

It is calculated by dividing the annual coupon payment by the par value of the bond.

The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time.

In other words, the current value of a bond is the present value of its interest payments plus its eventual principal repayment.

These risks include interest rate risk, which may cause the underlying value of the bond to fluctuate.

The Yield of a Bond is the percentage of annual interest that you get paid for your bond depending on the current market value of the bond you purchased.

Accordingly, the resale value of the bond will decrease as well.

In other words, bond holders suffered a 50 % write down in the nominal value of their bonds.

Why should that value necessarily equal the face value of the bond at any time?

The return and principal value of bonds fluctuate with market conditions and when sold, bonds may be worth more or less than their original cost.

The present value of expected cash flows is added to the present value of the face value of the bond as seen in the following formula:

This tool uses the present value of bond portfolios, adjusted for interest rate and inflation expectations, to show current retirees how much in retirement savings they need today to account for every $ 1 they need in the future, assuming they hold a portfolio made up entirely of investment - grade bonds and longer - term Treasurys.

It's useful to value that dividend stream like a bond and net off the derived value of that bond from the stock price to determine what the market is paying for the rest of the earnings.

However, if the current bond value of your bond dropped to $ 500 from $ 1000, the yield of your bond will be 10 % and you will still be paid $ 50 as per the original agreement.

In terms of total face value of bonds outstanding, the corporate bond market is bigger than each of the markets for municipal bonds, U.S. treasury securities, and government agencies securities.

If the country's economy is unstable, that increases the chance that they will default and not pay the full value of the bonds when they mature.

If the average annual rate of inflation over the next 10 years is 4 %, then the real value of those bonds at maturity is only $ 6,755,641.69.

We are consistently ranked among the nation's top bond, underwriter's and disclosure counsel in dollar value of bonds issued.

The cost of buying default protection on $ 100,000 par value of bonds issued by these companies has dropped from $ 890 (89bps) on December 31 2012 to $ 490 (49bps) as of May 9, 2014.

Because the amount of market discount, two points, is less than the de minimis amount (which in this case is 2.5 points, or 0.25 percent of the face value of a bond times the number of years between the bond's acquisition and its maturity), the market discount is considered to be zero and the difference between purchase price and sales price or redemption is generally treated as a capital gain upon disposition or redemption.

@Michael: I agree with your comment that the main value of bonds for long - term investors is lowering portfolio volatility.

«If the company restructures or goes into bankruptcy, the recovery value of the bond is greater than the current price,» he wrote.)

If interest rates continue rising — as we believe is highly likely — the principal value of the bonds currently held in these pension plans could take a substantial hit, even though they are considered relatively «safe» investments.