The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Question on callable bonds||Date: 3/11/2013 2:56 PM|
|Author: Wradical||Number: 34821 of 35442|
I see many callable bonds are selling well above par. For example, EMN.GG selling at $119; call frequency continuous.
If I buy this bond today and it is called tomorrow, do I only get back 100?
Maybe, or it may be callable at a premium. The call price is contractually set in the terms of the bond. This is spelled out in the "details" tab, if you look into buying it online.
And if a bond is callable, that's where the "YTC" (yield to call date) and "YTW" (yield to worst) become pertinent.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|