31.   It also makes lenders charge higher rates on loans to compensate for the risk that interest and principal payments will have less real value when they receive them.

32.   Inflation also drives bond yields higher because it erodes the value of fixed interest and principal payments.

33.   It will be backed by only enough U.S. Treasuries and French government bonds to cover a six-month rolling guarantee on principal payments.

34.   Its rebound in the following months allayed concern that money managers would see returns on Treasury investments erode when converting dollar interest and principal payments into yen.

35.   Last year, only eight California issues sunk into default, which means the issuer stopped making interest or principal payments, according to the California Municipal Bond Advisor.

36.   Many are willing to accept a temporary suspension of principal payments, with customers paying only interest charges.

37.   Norwest pays a floating rate to Wall Street and receives the monthly principal payments from the POs in return, said Broberg.

38.   No further principal payments are due to the Treasury or Fed until next year.

39.   POs are created by separating the principal payments of a pool of home mortgages from the interest payments.

40.   Renewed inflation concern comes at an inopportune time for owners of bonds, whose interest and principal payments are eroded by inflation.