They’re actually around 80 bucks, versus an initial value of a cool hundo. But they also pay out like a 5% coupon rate annually, so if you had bought them in '97 you’d be slightly beating inflation.
Coupon rate is paid on the principal - assuming the hundo is accurate then it’s 5%/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.
ebolapie@lemmy.world 2 weeks ago
They’re actually around 80 bucks, versus an initial value of a cool hundo. But they also pay out like a 5% coupon rate annually, so if you had bought them in '97 you’d be slightly beating inflation.
wewbull@feddit.uk 2 weeks ago
So those are associated with Motorola Solutions now, or did the debt move to Lenovo?
ebolapie@lemmy.world 2 weeks ago
Yeah, the debt belongs to Motorola Solutions now. Although it would have been very funny if they somehow stuck Lenovo with it.
Valmond@lemmy.dbzer0.com 2 weeks ago
Does that mean 5% of 80 cents or 80 bucks?
BeardedGingerWonder@feddit.uk 2 weeks ago
Coupon rate is paid on the principal - assuming the hundo is accurate then it’s 5%/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.
Valmond@lemmy.dbzer0.com 2 weeks ago
That seems quite the deal?!