However, as the bond moves closer and closer to maturity the total amount of interest that the bond will pay during its remaining lifetime is also moving closer and closer to zero.
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One, the yield to the worst call date is much better than yield to maturity of a non-callable bond (aka, bullet bond).
This leads me to the other advantage of bonds over bond funds: you can pick the maturity date and know with a high degree of certainty when you are going to get your money back.
This with a bond not of 30 year maturity, but infinite maturity!
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To be eligible for inclusion in the ETF, RMB Bonds must have an amount outstanding of greater than or equal to 750 million RMB and a minimum of six months remaining to bond maturity.
When you buy a corporate bond, you buy it at a price that gives you, over the life of the bond, an incremental yield over the yield on a Treasury of comparable maturity.
In bond-market lingo, the bond now has a "yield to maturity" of 2%.
The Vanguard Total Bond Market Index Fund has a yield to maturity of 1.6%, scarcely enough to keep up with inflation.
They have been trying to boost their performance by shortening the duration (a measure that takes into account not just a bond's maturity but the interest it pays) of their portfolios.
In these four periods of rising rates, managers had the acumen to navigate troubled waters by various techniques of managing bond types, sector allocation, duration, maturity, credit quality, country, and currency.
Although new efforts are underway in Western capitals to make bonds more readily rescheduable -- by such methods as a dramatic reduction in the percentage of bond holders who must agree to a change in the maturity structure -- it may be too late for Russia.
Bonds pay interest based on the expected inflation rate until maturity, plus a fair risk premium over inflation based on the riskiness of the bond.
Look around for bonds or bond funds that you can sell and replace with bonds of shorter maturity.
It is a measure of the total cash flows you will receive by holding the bond to maturity.
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Bonds with a maturity of more than ten years account for a third of the value of all outstanding bond issues.
The realized yield of a bond should be calculated if an investor plans to hold a bond only for a certain period of time, rather than to maturity.
For one thing, it is hard to know how much companies have in fact lengthened the maturity of their debts because the interest-rate swap market allows them to swap those fixed bond payments into cheaper floating debt, a popular strategy in the investment-grade market.
Bond traders thrive on playing the spreads between existing securities of comparable yield and maturity and the forthcoming issues.
Indeed finance officials plan to issue a new bond (which would reopen the market for emerging economies) to lengthen the maturity of the public debt.
The fact that early bonds had no fixed maturity date ensured that any change in interest rate was fully reflected in the capital value of the bond.
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Consider that the Barclays Municipal Bond Index (the most popular industry benchmark) is comprised of predominantly longer-maturity, higher-grade debt.
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