I always thought treasury bonds were under 2%. Why am I

Cause they just pay interest too infinity

>>1642739
Because they lock in the interest rate from when they were issued. Those were issued in 1987, when rates were high.

>>1643314
Huh?

>Issue date
>1987
There's your answer

>>1643321
are they still paying that 8% though, or is there some current yield I can look up?

>>1643886
Yes but you will have to buy them from someone who owns the bond and they wont sell you the bond unless you pay them a premium (not worth it)

>current yields

Look up bonds issued now

>>1643901
>they wont sell you the bond unless you pay them a premium (not worth it)
How can you possibly make the determination that it's "not worth it" when you don't know the price of the bond? Are you some kind of wizard?

>>1643985
Why would they sell you the bond? You would need to pay them the discounted premium interest rate so you wouldnt gain anything from the higher interest rate.

>Are you some kind of wizard

Yes

>>1643989
>Why would they sell you the bond?
Liquidity, tax planning, portfolio management, asset allocation, etc. etc. Are you under the impression that the seller's motive for selling somehow factors into the price calculus, because that would be a first.

Of course you're going to pay a premium for a bond with an above-market premium, just as there's a discount for a below-market coupon. Big fucking deal. You still haven't explain how you can dismiss the transaction as "not worth it" without knowing the price.

>>Are you some kind of wizard
>Yes
Of losing money? Because you obviously don't know a fucking thing about the financial markets.

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>>1644005
Good luck then famelam

>>1644005
Dude it's just bond math relax. Unless you give me some duration value for this bond or the dirty price don't get all mad. Bond math is second grade stuff, old school people still use them and investors who are too ignorant to look toward another vehicle that actually hedges arbitrary risk ...

>>1644099
Not to discount the fact that very few retail investors even touch let alone care about treasuries ...with a yield of less than 150 bps . I can find a Texas muni that will give me mad tax benis and give a current yield for a double a plus rating than this dinosaur treasury....

>>1643886
>are they still paying that 8% though, or is there some current yield I can look up?
They pay 8% relative to the principal of the bond. Nobody's going to be retarded enough to give away bonds with 8% yield in this market because it'd make arbitrage easy.

>>1644133
Meant to say that nobody will sell bonds with great yields without asking for a premium

>>1644099
>Bond math is second grade stuff,
Why are you being retarded? I'm not the one who dismissed the bond as "not worth it" without even knowing the market price. Jesus, your reading comprehension is as bad as the other guy's math skills.

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>same bond
What is the number I should be looking at here? I would imagine "current yield", but why is there such a discrepancy with that and AYW?

>>1644267
>why is there such a discrepancy with that and AYW
The bond matures in 5/17. Interest is paid periodically, usually quarterly but sometime less often. This particular bond may only have 1 or 2 interest payments left, and far less than a full year's worth of interest regardless.

>>1644238
>Getting this mad about bonds :^)

>>1644353
Insulting other people for their stupid posts doesn't mean I'm mad. On the contrary, its actually quite relaxing, and in a way, reassuring. There's a certain validation in seeing that most people are exactly as stupid as I imagine them to be.

So, on that note, thanks for your post.