10 ms·
I recall a bond from the 1700's in London that isn't being paid off. It had a structure that made it better to simply pay the interest rather than pay out the f
by spitfire 12y ago
I recall a bond from the 1700's in London that isn't being paid off. It had a structure that made it better to simply pay the interest rather than pay out the full bond.
Looking it up, I think it was probably a british Consul. A type of perpetual bond. Which in the case, you have very little reason to redeem it.
http://en.wikipedia.org/wiki/Consol_(bond) http://en.wikipedia.org/wiki/Consol_(bond)
- walshemj 12y agoUntil fairly recently before QE the 4% consol was well under par around 70 and so would have been costly to redeem. I looked at buying some of the consols for my ISA last month - its one of the few ways of getting a safe investment that pays more than inflation.
- justincormack 12y agoThe 4% Consol is the one being redeemed. Not entirely clear why - they could buy it back cheaper in the market than paying par.
- walshemj 12y agoI know I was vaguely looked at the 4% consuls as investment before the crash they where selling for around 60/70 in 2008