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URL:  http://boards.fool.com/the-description-of-the-newly-issued-emz-clearly-29253494.aspx

Subject:  Re: EMZ - liquidity now Date:  4/21/2011  4:09 PM
Author:  aj485 Number:  32713 of 35573

The description of the newly-issued EMZ clearly says The bonds are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. See the IPO prospectus for further information

Why would what amount to a very long-dated, zero-coupon bond be attractive to an investor seeking current-yield?


"Purchasers will not pay and the sellers will not receive any accrued and unpaid interest" does not mean that it's a zero coupon bond and that the issuer will not be paying interest. All it means is that, when bought/sold on the secondary market, accrued interest is expected to be reflected in the price that is paid, and not paid as a separate item, as it is with many bonds.

Per the prospectus