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Subject:  Re: BoA CD Date:  6/17/2011  11:17 AM
Author:  jackcrow Number:  32958 of 37017

What does anybody think?

Beats current 1 year and 5 year rates hands down. If it gets called after one year you are ahead, this holds out until year 5 for money invested in a insured asset today.

My long term crystal ball, or as some call it "the magic 8 ball toy", keeps changing its answer every time I ask about the long term future. When rates finally come off the bottom the scale is plausible but IMHO not likely. There are way too many iffies and buts flying around. My best guess is that the Fed is not going to raise rates quickly which would make the 6% of the second term over priced. The caveat is "when do the bond vigilantes mount up and ride". Another consideration is that BoA is overpaying today, will they still be in a situation 6 years from now where they will feel compelled to overpay?

If you have money that you would like to put to work short term with reasonable long term prospects it looks like a fair/good deal to me.

Does make me glad I don't have money invested in BofA stock, this is pretty pricy debt to be selling under current conditions.

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