Came across a "HARRIS N.A. IL" CD today (you can find the details here), and I'm strugging to understand the details. Here's what's listed:
Pay Frequency: SEMIANNUAL
Maturity Date: 09/29/2025
Call Protection: NO
Bond Type: CD
Interest Accrual Date: 09/29/2010
First Coupon Date: 03/29/2011
Price (Ask) 100.000000
Yield to Worst (Ask) 3.250%
I'm wondering if someone can help me with the following questions:
- What exactly is "Call Protection"? Is "NO" normal for a CD?
- Is "first coupon date" the first time it actually pays interest?
- Given that the first coupon date is in 6 months, and it's semiannual, is it fair to assume that this pays every six months?
- Given that the maturity date is 9/29/2025, this is really a 15-year CD, right?
- What does "Price (Ask)" mean? It says 100 - does that mean you buy in chunks of $100?
- What is "Yield to Worst (Ask)"? Is this the worst yield that this CD will return?
Thanks for the assistance. The final question is:
- 3.25% is the best yield I've seen from something as stable as a CD. Would it be silly, though, to lock money up in an investment like this for 15 years?