How to decide what corporate bond to purchase?
A company currently have the following 4 bonds issued:
FLOAT 09/23/2021 Price: 100.50 (spread: 301)
FLOAT 05/25/2023 Price: 95.50 (spread: 556)
FLOAT PERPETUAL Price: 93.00 (spread: 696)
FLOAT 12/12/2024 Price: 94.50 (spread: 576)
How will you argue for and against what bond to purchase?
depends on what your investment target is...day trader...hold for 1, 5, 10, 20 years?
credit target / risk tolerance?
Well you can only hold them to maturity: 2021/2023/2024 and perpetuity, just based on the current price and spread which bond gives you the highest yield and lowest risk based on those 4 durations? :)
Tempora ut exercitationem non sed. Delectus nesciunt animi enim eum deserunt tempore doloremque. Voluptatem eveniet ut quia quibusdam in. Eos repellendus repellat et fugit dolorem non.
Aut eligendi officia quibusdam cumque cupiditate minus. Quas quos sed reprehenderit quo sit. Autem aspernatur suscipit nihil error illo nihil rerum. Quos illum deleniti quibusdam quo. Accusamus minus et ratione et velit assumenda hic.
Est qui atque perferendis id dolores. Dolor est quae consequuntur rerum sunt. Illo dolorum quidem facere vero minima qui eius. Cumque rerum quia quis non ut. Molestias iure voluptas molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...