This bond sold at vanguard for example:
Long Beach Calif Uni Sch Dist Material Events
matures 08/01/2019
coupon 5.000
price 108.555
yield 0.593
So if I buy a $1000 bond at $1085.55 and receive the 5% interest payment, I will have about $1,105 in two years. Put that same $1085 into a FDIC insured savings account at 1.1% I'd have $1,109 in two years. Earn more interest at less risk and higher liquidity? What am I missing here? Why would anyone buy this bond?
Submitted August 15, 2017 at 02:42AM by pixelrebel http://ift.tt/2uXs2j9
