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Corporate bonds
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meester
Posts: 1,879 Forumite
With interest rates at an all-time low, corporate bonds are clearly more attractive.
The gross redemption yield of a 4.25% gilt maturing 7 March 2011 is only 1.54%.
Meanwhile you can get 5.53% by holding 22/12/2010 BOS 4.375 bonds to maturity.
Surely now BOS are government-backed, the risk of default must be the same as that of gilts?
The gross redemption yield of a 4.25% gilt maturing 7 March 2011 is only 1.54%.
Meanwhile you can get 5.53% by holding 22/12/2010 BOS 4.375 bonds to maturity.
Surely now BOS are government-backed, the risk of default must be the same as that of gilts?
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So are you saying that if BOS was fully nationalised because it ran into even more trouble, then its bonds would still have a value ?"How could I have been so mistaken as to trust the experts" - John F Kennedy 19620
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