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Subject:  GTE North’s 6.73’s of ‘28 Date:  3/12/2013  9:45 AM
Author:  globalist2013 Number:  34825 of 35576

GTE North’s 6.73’s of ’28 is a bond I missed noticing in a timely manner. So this morning, the question was whether to chase prices. The maturity is way the hell out there. But an investor would end up net-positive (with an adjusted YTM of 0.3%) when the discounting is done that assumes customary tax-rates and a 5% inflation rate.

However, the underlying company (FTR) seems to be in trouble. The short-ratio is 21.3%. The div-payout ratio is an unsustainable 308%. If borrowings are backed out of ‘curre