Timeline for Why would I not buy a bond for less than face value?
Current License: CC BY-SA 4.0
19 events
| when toggle format | what | by | license | comment | |
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| S Aug 2, 2021 at 22:03 | history | suggested | auspicious99 | CC BY-SA 4.0 |
grammar corrections
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| Aug 2, 2021 at 17:01 | review | Suggested edits | |||
| S Aug 2, 2021 at 22:03 | |||||
| Jan 28, 2016 at 7:06 | comment | added | Martin Capodici | @BrenBram the bond can be sold on earlier, so there is no need to wait until 2072. What the bond will be worth is another matter but that is addressed in the other answers. | |
| Jan 28, 2016 at 4:23 | comment | added | Jason | Alive, but perhaps not very happy | |
| Jan 27, 2016 at 23:50 | comment | added | Joshua | If God gave his word to pay you a trillion dollars in 2072 you will be alive in 2072 to receive it. :) | |
| Jan 27, 2016 at 20:23 | comment | added | BrenBarn | If the bond doesn't mature until 2072, it should be obvious that there are many reasons not to sell everything you own. Even if god himself gave his word of honor that he would pay you a trillion dollars in 2072, you still have to survive until 2072 to get it. | |
| Jan 27, 2016 at 19:15 | comment | added | Comptonburger | Your statement about indexes being better is a little disingenuous. Somebody who invested in the S&P 500 in 2000 would only be break even 13 years later in 2013. Likewise from 1966 to 1982 I believe returns were flat, a total of 16 years. | |
| Jan 27, 2016 at 15:25 | comment | added | Peteris | @Aequitas massive companies go bankrupt all the time. If you look at sets of massive companies like S&P 500 some 50 years ago, then about half of those companies are now bankrupt. If you look at any perfectly healthy massive company now, then there may well be a 10% chance that it will be bankrupt in 10 years. Many of the current on-going long term massive brands have "survived" only as brands, having been through insolvency, restructuring and shedding of bonds multiple times. | |
| Jan 27, 2016 at 15:18 | comment | added | xiaomy | @DSKekaha You'd also receive coupon payment if you hold the bond. | |
| Jan 27, 2016 at 14:58 | comment | added | DSKekaha | 2072? As in the YEAR 2072? Even a savings account that accrues only 0.5% interest per year will turn 80 into 100 about 10 years earlier than this bond you are talking about | |
| Jan 27, 2016 at 14:07 | comment | added | Quora Feans | Notice that buying for 80 a bond with 100 face value is an increase of 25%, not 20%. | |
| Jan 27, 2016 at 10:35 | comment | added | Aequitas | What's an index? Is 5% plus whatever a bank bill swap rate is, not a good investment anyway? | |
| Jan 27, 2016 at 10:33 | vote | accept | Aequitas | ||
| Jan 27, 2016 at 10:30 | comment | added | Aequitas | Floating Rate Note (FRN) issued by Crown Limited maturing on 14/09/2072, coupon rate based on 90-day bank bill swap rate plus 5%, paid quarterly. | |
| Jan 27, 2016 at 10:30 | comment | added | Aequitas | the bond matures in 2072 | |
| Jan 27, 2016 at 10:30 | comment | added | Aequitas | oh.... lol now I understand | |
| Jan 27, 2016 at 10:21 | history | edited | Will | CC BY-SA 3.0 |
Better answer
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| Jan 27, 2016 at 10:13 | comment | added | Aequitas | Are they allowed to just not pay? or only if they are bankrupt? The company I see this for is massive and I see no way that they would go bankrupt | |
| Jan 27, 2016 at 10:11 | history | answered | Will | CC BY-SA 3.0 |