lundi 4 janvier 2016

Corporate Bonds -What have I missed

Hello, My journey has brought me here in the hope that I can improve my limited understanding of the corporate bond market.

Two bonds from the same company have similar redemption dates and prices but with widely different interest rates. Why would I invest in the bond with the lower rate? What am I missing?

For example:

Lloyds Banking Group plc
GBP | XS0459091079 | B4Y23N3
12.750%
10 August 2020
104.500

compared to

Lloyds Banking Group plc
GBP | XS0459093364 | B5LJY75
7.869%
25 August 2020
104.000

I'm hoping some of you trading savvy members can point me in the right direction.

Thanks for any help.

Phil:)


Corporate Bonds -What have I missed

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