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What else can I help you with?
Do bonds usually sell at their maturity value?
no they sell at their present value
Do bonds have a fixed maturity?
no
What happens when a yield to maturity is less than the yield to call?
The issuer will call the bonds and issue new bonds to the maturity date.
How long does it take for bonds to reach full maturity?
Different bonds have different maturity dates. Additionally, there are different type of bonds, some provide interest based on the face value, and some provide the face value upon maturity.
Why do bond prices and yields vary inversely?
Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
What are the different types of yields on bonds?
The different types of yields on bonds include current yield, yield to maturity, yield to call, and yield to worst. Current yield is the annual interest payment divided by the bond's current price. Yield to maturity is the total return anticipated on a bond if held until it matures. Yield to call is the yield calculation if a bond is called by the issuer before it matures. Yield to worst is the lowest potential yield that can be received on the bond.
When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price the bonds are?
callable bonds
Does the yield to maturity represent the promised or expected return on the bonds?
The yield to maturity represents the promised yield on a bond
If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?
No......The price of the bonds will be less than par or 1,000.....
how long does it take a us treasury bond purchased in 2000 to mature to face value?
All treasury bonds reach final maturity at 30 years of age. To determine the current value of your bonds, visit www.publicdebt.ustreas.gov and download the Savings Bond Wizard.
When is the best time to sell savings bonds?
The best time to sell savings bonds is when they have fully matured, which is typically between 1-30 years depending on the type of bond. Selling before maturity may result in penalties or lost interest, so it is important to check the bond's maturity date before selling. Additionally, consider your financial goals and the current interest rate environment when deciding to sell savings bonds.
1 Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are know as?
callable bonds
