Serial redemption

 

Home
Site Map
Add Term
Search
About Us
Contributors

Serial redemption

The redemption of a serial bond.



Serial redemption

Similar Matches

Redemption yield

Redemption yield

Yield calculations on bonds aim to show the return on a gilt or bond as a percentage of either its nominal value or its current price. There are three types of yield calculation that are commonly used:Nominal YieldThis is calculated by dividing the annual income on the bond by its nominal or 'par' value. So the nominal yield on a 100 bond which pays 5% interest per year is 5/100 x 100 = 5%.Current or 'Running Yield'This is calculated by dividing the annual income on the bond by its current market price. So if the market price of the 100 bond dropped to 95, the current yield on the bond at that time would be 5/95 x 100 = 5.36%. Note that as the market price of a bond drops, its yield goes up.Redemption Yield'The Redemption Yield shows what the total return on a bond would be if held to its maturity date. It reflects not only the interest payments a bondholder will receive, but also the gain/loss he will make when it matures. The income element is the same 'current yield' calculation performed above. The gain/loss element is calculated by taking the difference between the current market price and the nominal value of the bond (e.g. in our example 100 - 95 = 5), dividing it by the number of years til maturity (assume 5 years for simplicity, so 5/5 = 1) and then dividing that figure by the current price of the bond (1/95 x 100 = 1.05%) The yield to redemption is the sum of the current yield (5.36%) and the capital yield (1.05%) = 6.41%.


Redemption fee

Redemption fee

A fee some mutual funds charge when an investor sells shares within a specified short period of time.


Redemption date

Redemption date

The actual date on which repayment of a bond or loan stock takes place.


Redemption penalties

Redemption penalties

Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.


Redemption date

Redemption date

The date on which a bond matures or is redeemed.


Further Suggestions

redemption price
Overhanging redemption penalty
Redemption
Redemption charge
gross redemption yield
Redemption Period
Redemption statement
Redemption
redemption
right of redemption
Redemption
Redemption price
redemption fees
Mandatory redemption schedule
Right of redemption
Extended redemption penalty
Preferred equity redemption stock (PERC)
Redemption penalty overhang
Redemption cushion


 
All rights Reserved. Do not copy without permission.