Hi there,
I am your big fan of your blog. I have read pretty much all your posts. Now I have a quick question for you.
On the blog, you said
“澳元可放在澳洲銀行買入短債，7%年息可達。”
I have an Australia commonwealth bank account. The bond you said here refers to investment growth bonds?
http://www.commbank.com.au/personal/financial-planning/investment-products/investment-growth-bond/returns-fees.html
I am a beginner and I have no experience. If you check out the performance report on the link, the returning is quite unstable and it could end up like around 4% in most of the chances, which is the same as term deposit. Or I am reading it wrong..
Cheers,
Eric
answer
Hi Eric,
Answering your question is not easy, it is better to have offline talk on our course. And that’s why we invite people to our course. We need to add an disclaimer before do some education now.
Disclaimer: We are not offer products nor giving advise on investment. It is a education topic on bond price and yield
Here are the example:
1.Morgan Stanley AUD bond mature April 2017, first year 2017 and variable after
Coupon: 9.00 (first year, floats at 3 mo. LIBOR plus % in later years)
Maturity: 4/30/2017
Pays: Quarterly
Rating: A-
Price: 100.0
Yield to Maturity: VAR
2.Goldman Sachs Quarterly Pays with Yield to Maturity 7.11% mature on 2016
Coupon: 4.98
Maturity: 4/12/2016
Pays: Quarterly
Rating: A1/A-
Price: 92.6
Yield to Maturity: 7.11%
Bond holder exposes to issuer risk. You know that?