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Guaranteed Capital Bond.
Energize
Posts: 509 Forumite
My grandad has a guaranteed capital bond with Natwest, in which £15,000 was invested. It commenced on 27/01/06 and matures on 08/08/09, at the time of investing the FTSE 100 index was 5725.1. Does anyone know how much this bond is worth now?
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Comments
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Assuming he doesnt surrender before maturity and it was a 100% capital security then it is worth £15,000. If he surrenders before maturity then he loses the guarantee.
I wouldnt be surprised to see the FTSE above 5000 again by his maturity but I think 5725 is going to be pushing it somewhat. Plus there is probably averaging over the last 12 months which will mean it would have to be a lot higher than that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So when it matures it will be worth no more than it was at the start?0
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So when it matures it will be worth no more than it was at the start?
correct. However, it has done its job fine. It was a stockmarket investment with a capital guarantee if the markets dropped. It is not a replacement for cash. The 3 year term was a bit short though.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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