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? :)
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