Sentences with phrase «value of the bond when»

Then you holdout — refuse to negotiate a reduction in the value of the bond when the country tries to restructure its debt.

The bondholder receives the par value of the bond when the bond reaches its maturity date, meaning the specified period of time is up.

Odesser likes individual bonds because they reward the investor with an income stream and return of the principal value of the bond when it matures.

Not exact matches

His legal background proved invaluable in 1991, when the state of California and its insurance commissioner John Garamendi seized Raleigh's then - financial partner Executive Life Insurance Company after the value of the insurer's multibillion - dollar portfolio collapsed — a fate tied to its massive investments in the junk bond market of the go - go 1980s.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

Type 3: The value - at - risk (VAR) shock in Japan in 2003 occurred when fears spread that the Bank of Japan, which was already doing QE before it was called QE, would taper its purchases of Japanese Government Bonds.

Here we see that the present value of our bond is equal to $ 95.92 when the interest rate is at 6.8 %.

«People purchase bond funds when they are looking for a safe way to get returns,» said Charles C. Scott, president of Pelleton Capital Management in Scottsdale, Ariz. «However, bond funds can be somewhat risky when interest rates rise, and the bond funds lose some of their principal value.»

When savings account rates and yields on government bonds are low, gold suddenly becomes much more attractive to hold as a store of value.

UNTIL last Thursday, when leaders outlined their latest plan, Mr. Trichet had long argued against a severe reduction in the value of Greece's bonds.

At the same time, some 70 per cent of government - issued bonds are yielding 1 per cent or less, and when you combine the equity / bond value of the 15 largest global markets they've never been more expensive.

When the cost of living has eaten away at government bond yields, investors have tended to seek more attractive stores of value, including gold.

estimate of annual income from a specific security position over the next rolling 12 months; calculated for U.S. government, corporate, and municipal bonds, and CDs by multiplying the coupon rate by the face value of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate bonds (including treasury, agency, GSE, corporate, and municipal bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed - end funds, and certain types of bonds

Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as Bonds» interest payments are calculated as a percentage of their principal, so when higher inflation pushes up TIPS» principal value, the bonds» interest payments rise as bonds» interest payments rise as well.

Lesson 3: Duration and Interest Rate Risk — Since interest rates affect bond prices, one of the biggest risks when investing in bonds is that interest rates will move higher, causing the value of your bonds to lose value.

The company pays interest payments, usually twice a year, until the maturity of the bond when it pays the face value of the bond to investors.

If you buy the bond when issued and choose to hold until maturity you'll get back the face value of the bond plus the interest incurred over a ten year period.

When interest rates rise, the value of a bond falls.

The joint venture will take up closed - ended municipal - bond funds in the next year or so that when the predicted bond market collapse comes, it will drive fund prices down to as little as 40 % of net asset value.

When I first looked at this, I though most of these must have been from unrealized losses on bonds, but to my surprise, they are mostly losses from affiliated company stocks, which must be valued at market price or net worth.

@Mark generally when equity falls, dividends fall less, and of course bond value falls do not affect their income.

When yields rise, the value of bonds (and bond fund shares) fall.

Stock returns vary greatly from year to year, and as a result, bonds outperformed stocks in about one - third of the past one - year time periods, helping stabilize portfolio values when stock returns were small or negative.

People would socialize and bond less and less on the kinds of values that form rigid barriers to others» values and more on who THEY are — and when faced with billions of individual people, the reasons for fighting wars become less defined.

The problem, it seems, is «haircuts» — the amounts subtracted from the market value of assets, such as government bonds, that are used as security when a bank borrows cash from another bank.

The cause, it seems, are «haircuts ``, Wall Street jargon for the amount subtracted from the market value of an asset, such as a government bond, that is used as security when a bank borrows cash from another bank.

Bonds tend to hold their value in times of recession and, therefore, would be a better asset to support you when stocks are low.

When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

Here we see that the present value of our bond is equal to $ 95.92 when the interest rate is at 6.8 %.

Also, when you buy a CD through a broker, the only way to get your money out early is to sell the CD, and since the value of a brokered CD responds to interest rate changes like a bond, the value of a brokered CD could decline significantly if interest rates were to increase.

I know that when rates rise the value of my bond funds will decrease, and I know that I'm earning next to nothing in my money market funds.

The primary risk of owning bonds is that when they're sold on the open market the face value may have decreased in the interim.

Typically, when interest rates rise, there is a corresponding decline in the market value of bonds.

The Capital Base included in CPR is also likely to be overstated because the investment assets of the bond insurers consist primarily of bond insurer guaranteed obligations that are valued inclusive of the guarantee, when they should be valued on an unwrapped basis.

When the yield on 10 - year federal bonds spiked earlier this year — from 1.88 % on May 16 all the way to 2.55 % on July 5 — the value of broad - based bond ETFs plummeted sharply.

When I was a bond manager for an insurance company that had long - dated promises to pay, I bought a variety of fixed - rate bonds that that appreciated dramatically in value in a falling interest rate environment.

That is why SIPC does not bail out investors when the value of their stocks, bonds and other investment falls for any reason.

Because in times of financial crisis, when an emergency fund will be the most useful, chances are your stocks and bonds will have decreased in value and it can be detrimental to your long term finances to sell them and use the money.

When the price of a bond increases above its face value, it is said to be selling at a premium.

You say: «In terms of numbers, varying allocations according to P / E10 historically would have allowed us to increase the amount that we could withdraw SAFELY from 4.0 % to 5.0 % + (of the portfolio's initial value plus inflation), when compared to a fixed allocation of stocks and bonds.»

I know the bond funds will decline in value when interest rates rise, but the CDs will significantly soften the blow on the overall fixed - income portion of my portfolio.

When the value of a bond decreases, it is likely to sell at a discount to par.

For example, when interest rates go down, the bond values normally go up; when the interest rates go up, the value of bonds go down.

The date when the issuer of a certificate of deposit (CD) or bond agrees to repay the principal, or face value, to the buyer.

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.

Bond investments are subject to interest rate risk so that when interest rates rise, the prices of bonds can decrease and the investor can lose principal value.

Assume that when XYZ first sells its bonds (through selected brokerage firms), you buy one of these brand - new bonds at par value.

The authors calculated the average ending values for a $ 1 million portfolio invested all at once in a mix of 60 % stocks and 40 % bonds turned into $ 2,450,264 on average, compared to $ 2,395,824 when dollar - cost averaged over the course of a year — a difference of more than $ 54,000.

When the bond matures, the bondholder receives the face value of the bond ($ 5,000 in this case), barring default.

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.