Looking at the price of bonds for a bank left me a bit puzzled.
If I take the two following bonds:
- UBS 7.125% Perpetual Corp (USD)
- UBS 6.875% Perpetual Corp (USD)
It seems that the one with the higher coupon would cost more, as it gives more money than the one with lower coupon, and the issuer is the same. However, checking online the price of the 7.125% coupon is around 103US$, while the one at 6.875% is around 110US$.
Why is it so? The data have been updated recently, so there should be some liquidity on those bonds. The interest payment is similar (3 days delay, early Aug).
Additionally, the Coupon is defined as "Variable", while the name indicates a fixed quantity interest rate.