| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
This is probably a stupid question...just a week (or what
appears to be a week) ago the long bond was well over $108.
I watched NBR tonight and it is now below par. What
happened? What does a sudden drop (if it is that) such as
this tell us?
Thanks!
Dan
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 904.1 | Different bond this week | EVMS::HALLYB | Fish have no concept of fire | Tue Aug 15 1995 09:14 | 10 |
The long bond you saw priced at 108 has been replaced with the newest
series, the ones auctioned off last week. They have different coupon
payments: the new ones pay less than the old. The new ones therefore
have a lower face value. When issued (i.e., last week) their face value
is always $100.
Which is why you should look at the yield to maturity which hasn't
changed very much in the last week.
John
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| 904.2 | As I said, it was a stupid question! | MIMS::BEKELE_D | When indoubt THINK! | Tue Aug 15 1995 21:23 | 3 |
Ooops! forgot about the quarterly refundings.
Thanks!
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