I am thinking of buying T-BOND 14.000% 15-Nov-2011 - where can I find information about this T-BOND? Risk?

Question

http://reports.finance.yahoo.com/z1?b=1&so=a&sf=m&tt=1&tz=1&tc=1&tm=1&stt=-&pr=0&cpl=7.00&cpu=-1&yl=7.00&yu=-1&ytl=7.00&ytu=-1&mtl=60&mtu=-1&rl=3&ru=-1&cll=1

Answer 1

This would be a bond that is 25 years old and matures in another five years. Since it is backed by the US treasury, there is no default risk. You have to pay ordinary income taxes on the interest that is paid but do not have to pay any state or local taxes.

It would be slightly less sensitive to interest rate changes than a new five year bond -- because of the big interest payments. It will also be more expensive because of those interest payements.

The yield of this bond should be close to the yield of a new 5-year bond. Over the course of five years, you will have a gain because of the higher coupon rates. You will also have a capital loss due to the fact that you pay more than 100% of the face value for it.

Here is the thing you need to look at. Does the tax loss from the lost principal make up for the taxes you have to pay for the extra coupons? You may want to look at the after-tax flows from this bond and a new 5-year bond to see which one is really better.

Answer 2

What country are you taking about? If you're talking about the US, then their T-bonds are not at 14%. The current rate for the 5 year is 5.06% today. You had to have come up with the 14% somewhere, so go back to that source and do some more research on it. Emerging market bonds might give a higher rate, but there are usually interest rate and currency problems that make the risk higher.

Edit: If go to the link you just mentioned, you will see that the first coupon date is in 1982. So, yes, you can buy the bond, but you would pay way above par for the extra coupon. It's getting called soon anyway, so I'm not sure if it's worth it. As Mark suggests, you should just the after tax flows for both that and a comparable security currently.

Answer 3

These people are all wrong... You can buy a Treasury bond whose coupon is 13.25% maturing in 2014, callable in '09. You'll pay 122.36% of par, bringing your yield down to a competitive 4.89% at the call. The bond was issued in 1984, when interest rates were very high.

Answer 4

initially, you're equating averaging 33 HR per season over 15 years to those that've completed it a pair of times. it is not a valid assessment in any respect. a lot of mediocre gamers have been hitting over 30HR a season for a protracted time and in checklist numbers because of the fact the previous due 1890s (a timeframe it is purely somewhat too coincidental for me). after all, there became by no ability any question that Bonds became the appropriate participant interior the sport and became on his thank you to starting to be to be between the appropriate ever, even earlier he supposedly began taking PEDs. His greatness as a participant became by no ability uncertain. yet Bonds became by no ability a properly cherished character even earlier the steroid question got here up. So combine that together with his drawing close Aaron's checklist and the resultant controversy shouldn't marvel anybody. nevertheless, to verify Bonds to Aaron is somewhat deceptive. Hank Aaron retired #2 all-time in complete hits (starting to be to be #3 after Rose and Cobb) and had to pass by a techniques, a techniques worse than Bonds will ever comprehend. And the assessment to Babe Ruth is stupid in view that he performed component of his occupation interior the ineffective ball era and as a glass. So i do no longer think of any in yet differently of him because of the fact none of what's happening surprises me. He became in all hazard the appropriate participant I ever observed yet became by no ability somebody i could desire to cheer for. I do have a team of his rookie enjoying cards although. i think of of all the gamers surrounded by the steroid question he's the single participant who merits to be interior the HoF, it is how good he became (I additionally think of Pete Rose could desire to be interior the HoF too if that makes a distinction). P.S. anybody who thinks McGwire is getting or has gotten a unfastened bypass by the media is clueless. The media relentlessly excoriated him in view that his testimony in front of Congress. He regularly could have been seen a shoe in to get into the corridor in his first 12 months of eligibility (#a million all time HR/AB, #7 all-time HR record) and he did no longer come close. Bert Blyleven have been given two times as many votes!! McGwire's retired now so he's not interior the spotlight the way Bonds is that's why he's not suggested.

Answer 5

A U.S. T-Bond ? 14.000% ? 15-Nov-2011 ?? I doubt if this is a U.S. Bond and predict there is no information on it. Try looking for a North Korean, Iranian, or Tajikistan description of this financial instrument

Answer 6

It is impossible.

I would check with a Financial Advisor before buying anything If I were you.

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