Buying Bonds

[BlasterBates]

Anybody bought bonds ?

If I buy a bond which is about to expire, do I get the coupon payment due and face value ,and how long does it normally take before they're settled up

[MarillionFan]

I had numbers 003-028, but 007 was a real disapointment.

[Francko]

Anybody bought bonds ?

If I buy a bond which is about to expire, do I get the coupon payment due and face value ,and how long does it normally take before they're settled up

I don't waste money in things like bonds or else.

Milan

[ASB]

Anybody bought bonds ?

If I buy a bond which is about to expire, do I get the coupon payment due and face value ,and how long does it normally take before they're settled up

Depends on the bond. Normally you buy with coupon but they arealso normally quoted xc around payment date.

[Francko]

Depends on the bond.

Bond, James Bond.

[BlasterBates]

Thinking about the following bond:

GMAC LLC EO-MED.-TERM NTS 2001(06) INTL (748413)

Can't see any xc status.


There is seven days left price 100.1 on 99.85 basis.

[ASB]

Thinking about the following bond:

GMAC LLC EO-MED.-TERM NTS 2001(06) INTL (748413)

Can't see any xc status.


There is seven days left price 100.1 on 99.85 basis.

Ah, so it's a US bond. Dunno. But I think you can safely assume you won't be getting the final coupon at the prices you quoted. I'm sure the broker will know.

[BlasterBates]

So how come is the rate of return calculated at 8% for a 6% coupon on issue price of 99.85.

Is that because only a part of the coupon is to be payed

The price is quoted on the stock exchange spread 100.1 to 99.5 (approx)

[BlasterBates]

For those who might be interested...

Basically the price quoted excludes the coupon, the so called clean price, the seller will then demand accrued interest corresponding to the amount of interest outstanding since the last coupon payment.

..aha now I understand.

[bobhope]

If it's this ISIN: XS0201270583 (2.35 % Euro Medium-Term Notes) , then you can see (from quotes.ubs.com)

the coupon is 2.35
Accrued Interest is 2.31,

so you would get 0.04, but because the bond price is above par (100.1) you'd make a 100 + 0.04 - 100.1 = 0.06 loss.

Long term GMAC bonds are dodgy, because of the uncertain future of the company (their pension obligations are more than the company is worth)

PS. If you know of a decent bond that I can put in my ISA, let us know. I've got 20k in a share isa sitting in cash, because there's f*all of value out there.