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Can you actually buy them at that price? Don't they get auctioned off, and so that the actual yield is lower? From reading that web page it looks like the eff
by bokonist 14y ago
Can you actually buy them at that price? Don't they get auctioned off, and so that the actual yield is lower? From reading that web page it looks like the effective yield was only 4-4.5%
- bokonist 14y agoUPDATE: as svachalek points out, the 4-4.5% is not even the right yield. That is 4.5% interest per year, but if you pay $110 for the bond, you will only get a principal returned of $100, so the effective yield-to-maturity is even lower.