Sentences with phrase «value of the bond you purchased»

For example, if the face value of the bond you purchased is $ 1000 and the coupon rate percentage of your bond is 5 %, then the annual interest you are paid for the bond is $ 50.

Not exact matches

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.

«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.»

The purchase, to be mostly paid for in shares and convertible bonds, follows Ensco Plc's (ESV.N) acquisition of smaller drilling rival Atwood Oceanics Inc ATW.N in an all - stock deal valued at about $ 839 million in May.

But potential tax implications get trickier with bonds purchased in the secondary market at a premium or discount — in other words, investors that paid more or less than the face value of the bond.

Once your Payroll Savings Plan is set up in TreasuryDirect the system will automatically purchase the type and dollar value of bond you want every time you have accumulated enough money in your Payroll C of I to make the purchase.

the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single - priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one - month (30 day), three - month (90 day), and six - month (180 day) maturities are auctioned weekly; treasury notes with two - and five - year maturities are auctioned monthly; Notes with three - year maturities are auctioned in February, May, August, and November; treasury bonds with 10 - year maturities are auctioned in February, May, August, and November.

$ 7.6 billion worth of emerging market stocks and bonds were purchased by foreign investors in March — an «impressive» investment value according to the Institute of International Finance, considering what a volatile month it proved to be.

Very simplistically, we look to purchase equities selling cheaply relative to our estimate of their intrinsic value and to build out the portfolio with bonds that enhance income and reduce volatility.

The Chinese policy may be slowly eroding the value of the US dollar, since the US is sometimes creating money to cover the shortfall or having its bonds purchased by highly leveraged governments that itself buys bonds from in a reciprocal fashion.

Do they wish to go down an old and trodden path with Supervisor Gromack that has taken the town to the second highest property taxes in the United States where senior citizens were to be sold out to protect the Town's reserve fund and its bond street rating, where the properety values of citizens living in the Town of Clarkstown would not be protected by implementation of a Ward System, where consolidation of purchasing functions with the County would not occur, and where systemic corruption would continue to grow as revealed by several arrests of individuals receiving compensation from the Town?

So, if you purchase a bond and then interest rates fall, the value of your bond will go up.

Yields on zero coupon bonds are a function of the purchase price, the par value and the time remaining until maturity.

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.

Reference security: Security X is a reference security for another security, Y, if Y may be converted into, exchanged for, or exercised to purchase or sell X, or if X in whole or part determines the value of Y. For example, if a convertible bond is convertible into common stock, the common stock would be a reference security for the bond, but the bond would not be a reference security for the stock.

Capital Gain An increase in the value of an asset such as stocks, bonds, mutual funds and real estate between the time the asset was purchased and the time the asset was sold.

The effect of this rule is that a taxpayer who purchases a tax - exempt bond subsequent to its original issuance at a price less than its stated redemption price at maturity (or, if issued with OID, at a price less than its accreted value), either because interest rates have risen or the obligor's credit has declined since the bond was issued, and who thereafter recognizes gain on the disposition of such bond will have part or all of the «gain» treated as ordinary income.

Under the de minimis rule, if a bond is purchased with a small amount of market discount — an amount less than 0.25 percent of the face value of a bond times the number of complete years between the bond's acquisition date and its maturity date — the market discount is considered to be zero.

Parity Parity price Participating preferred stock Participating (semi-fixed) Trusts Partnership Par value Passive income Pass - through security Payment date P / E ratio Penny stocks PHA Bonds Phantom income Pink sheets Placement Ratio Plan completion life insurance PN Point Portfolio income Position limits Positions book Pot Power of attorney Pre-dispute arbitration clause Preemptive right Preferred stock Preliminary prospectus Preliminary study Preliminary statement Premium Pre-refunding Pre-sale order Price to Earnings ratio Primary distribution Primary market Prime rate Principal Principal stockholder Principal transactions Private placement Private placement memorandum Private securities transaction Proceeds sale Production purchase program Profile Profit - sharing plans Program trading Progressive tax Project note Prospectus Prospectus delivery period Proxy Prudent Man Rule Public float value Public Housing Authority Bonds Public Offering Public offering price Purchaser's representative Put bond Put option Put spread

So if you can purchase a bond at $ 80 which has a face value of $ 100 why would I not sell everything I own and put all that money into buying this bond?

That's because the difference between your purchase price and the bond's face value is amortized over the life of the bond and taxed annually as though it were interest.

For example, if a five - year strip bond with a face value of $ 10,000 is purchased for $ 9,057, it has a yield of 2 % — because $ 9,057 invested for five years at 2 % and compounded semi-annually would grow to exactly $ 10,000.

For example, if a bond is selling at 95, it means that the bond may be purchased for 95 % of its face value; a $ 10,000 bond, therefore, would cost the investor $ 9,500.

The OID may be seen as a form of interest, since the buyer receives the face value of the bond even though he paid less than par when it was purchased.

the act of an issuer calling, or purchasing a fixed - income security from the holder, generally at face value, prior to the stated maturity date; the bond indenture can provide details on possible redemptions

the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single - priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one - month (30 day), three - month (90 day), and six - month (180 day) maturities are auctioned weekly; treasury notes with two - and five - year maturities are auctioned monthly; Notes with three - year maturities are auctioned in February, May, August, and November; treasury bonds with 10 - year maturities are auctioned in February, May, August, and November.

The low par values of the preferred shares also make investing easier, because bonds, with par values around $ 1,000, often have minimum purchase requirements.

In put the type of the bond and date of purchase and the calculator will provide you the current value of the bond..

These bonds can be purchased in denominations of $ 50, $ 75, $ 100, $ 200, $ 500, $ 1000, and $ 5,000, though not all of them are purchased at face value.

Compared to commercial credit ratings, Maximum Loss compares the loss potential of a security to its trading value, resulting in limited exposure to bonds trading expensively compared to their potential losses and encouraging the purchase of bonds trading near or below their workout values.

One important point to note as repetitively mentioned in this article is that when you choose to sell your existing bonds before the maturity date, there is no guarantee that you will get back the entire principal amount that you spent while purchasing the bonds and this is entirely dependent on the current value of the bond and the interest rate.

The benefit of staggering your long - term bond purchase is that even though all your bonds will mature during the same period, as you are purchasing the bonds at different periods, you will be able to get around the times when interest rates are high and bond values and low and buy bonds when there are no risks.

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 Par Value or Face Value is a term used to define the principal value of each bond, which means the amount you had paid while purchasing the Value or Face Value is a term used to define the principal value of each bond, which means the amount you had paid while purchasing the Value is a term used to define the principal value of each bond, which means the amount you had paid while purchasing the value of each bond, which means the amount you had paid while purchasing the bond.

For example, if you purchased a bond of $ 1000 with a coupon value of 5 %, then the annual interest paid to you is $ 50 (0.05 x 1000).

In the case of bonds, as you are just lending money to the company or government, you are actually not becoming a part of it and hence the investment you made in terms of bond is not affected by the rise or fall in the company's value and at the end of the maturity date, you will receive back the amount you invested while purchasing the bond.

The rest of your money you would then invest in a mix of stock and bond mutual funds (preferably low - cost index funds) that has the potential to generate higher returns that can grow the value of this component of your savings stash and maintain its purchasing power in the face of inflation over the long - term.

The size of the spread depends on how large a purchase you make (typically the minimum is a $ 5,000 value) and each broker will have different premiums for different bonds.

Nevertheless, you have to regard that these are treated like a stock instead of it having its original bond value especially if you are an investor purchasing after an essential price appreciation.

If you purchased a government bond a year ago for $ 100 with a coupon of 4.00 % ($ 4.00 interest per year) and interest rates were to rise to 6.00 % the market may price your older bond at market value for an equivalent coupon of 6.00 %.

If interest rates are high but decreasing and zero coupon bonds are purchased in an individual retirement account then the value of those bonds could increase significantly in a tax deferred environment.

For example, the table below shows three different bonds, all maturing in two years and all of which give the buyer a return of 4 % if purchased at their net present value price:

This nugget of tax law states that if you purchase a bond at a discount and the discount is equal to or greater than a quarter point per year until maturity, then the gain you realize at redemption of the bond (par value minus purchase price) will be taxed as ordinary income, not as capital gains.

To rebalance the portfolio back to its 60/40 target asset mix, you would need to sell $ 12,000 of bonds and purchase $ 12,000 of equities ($ 70,000 new portfolio value × 60 % target equity asset mix = $ 42,000 minus $ 30,000 of existing equities = $ 12,000 of additional equities required).

Often, Stable value funds would purchase mortgage bonds guaranteed by Fannie, Freddie, or one of the guarantors.

Both their face value and interest payments are pegged to the Consumer Price Index and adjusted twice a year, which means you're guaranteed to maintain your purchasing power over the life of the bond.

Instead of a corporation issuing a fixed income security for a value of $ 1,000 such as the case for a bond the trust purchases a large group of the same fixed income product and re-issues shares at $ 25 (like a preferred share).

The bond rally and forex drop in value have been driven by fears of deflation and speculation that the European Central Bank will need to continue, if not increase, the purchasing of debt to stimulate the region's economy.

The sale of a block of bonds and the purchase of another block of similar market value.

I'm aware that international funds, bonds, and growth / value stocks can be purchased through index funds too, and I'm actually moving more of this money into them.