UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35340  
Subject: Re: Need some beginner help Date: 2/6/2013 7:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 13
Bobcatkitty,

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...

- Joel
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement