The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Need some beginner help||Date: 2/6/2013 7:31 PM|
|Author: joelcorley||Number: 34757 of 35114|
You wrote, Let's start with assumption that "coupon" is the interest rate they pay?
Yes. The stated coupon should be the rate paid annually. (I think some sites list the amount paid per period. You may also need to know the payment frequency/schedule.)
Also, YTM & YTW.....don't have a clue It say YTM 2.33 and underneath is says MAT
YTM = Yield to Maturity. This is the yield you will get if the bond pays out through it's maturity date.
YTW = Yield to Worst. This is the yield you will get if the bond is called at the earliest or least favorable time to you if you bought it today.
MAT = is usually short for Maturity date.
And, Price is $109.05, again I assume that is what I would pay for one bond?
Price = The price is stated as a percentage of par value. 100 means you would pay $1,000 for a bond with a $1,000 par value. A price of 109.05 means you would pay $1,090.50.
Also, Next: 191216AV2 250 (again QTY min?)
191216AV2 is a CUSIP ( http://www.sec.gov/answers/cusip.htm ), which is a standardized code that identifies registered investment securities. This security is a Coca Cola bond that matures in 2021 with a 3.30% coupon.
I'm assuming the 250 is associated with the minimum QTY (abbreviation for the word quantity). So what this appears to be saying is that the seller will sell a minimum of 250 bonds. At a price of 109.05, a minimum purchase will set you back a cool $272,625.00.
Finally, Industrial 10
Coca Cola (KO) is being classified as an industrial issue. Personally I'd say it's a consumer product. FINRA classifies it as "Beverages/Soft Drinks".
For additional reading, you might want to check out the board's FAQ: http://boards.fool.com/bonds-fixed-income-investments-faqs-2...
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|