Ok cheers, the math checks out. So how do they calculate the quoted rate, which as you have highlighted is wrong.
However if rates drop and you sell I disagree you will have a greater return over the period.
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I don't own shares all in the same industry. Only two Oceania and Arvida.
I have bonds in varying companies.
If interest rates go down to 1 percent, and you sell bonds you bought at 6.9 percent, You make money. If all you can get is 1 percent investments, you have to make money selling an investment with a 6.9% yield.
Not your wife but still curious about bonds. So you can sell the bonds at sometime before maturity. I'm guessing if the interest rate dropped to 3% you could sell you bonds to someone who factors in a 8% return and you get something half way in between in cash as if you had waited those years and got annual payments? Disclaimer: I don't know anything about bonds.
Could we maybe move the bond discussion to a new thread, as it is now a generalised discussion on bonds, not specific to OCA?