2k invested over 6 years you’d get 660quid in profit back. But 6 years is a long time isnt it usually like 2 years for bonds?
I make it £837 if the interest is compounded annually. £867 if it is compounded daily.
Santa:
2k invested over 6 years you’d get 660quid in profit back. But 6 years is a long time isnt it usually like 2 years for bonds?
I make it £837 if the interest is compounded annually. £867 if it is compounded daily.
Zero coupon bonds are better. You know exactly what you stand to get as a return, and they’re really the only form of bond that pays true compounded interest. 
Anyone who bought a 20-year zero coupon bond that is about to mature in the next year is laughing all the way to the bank - providing the firm it’s based on still exists of course!
(Because the rate was based on the rather high prevailing interest rates of 1992!)
Lock it in when interest rates are high, choose very carefully when interest rates are low.
£100,000 invested in a 20 year 16% zero coupon bond in 1992 would mature with a return of over a £million… And that’s for one of the safer ones out there at the time! There were investment grade bonds back then paying over double that on the zero coupon market. Even now, zero coupons pay well over the odds (albeit much lower these days)- because they require a total locking up of the money for the entire investment period. No early cashouts.
These bonds used to be popular with pension pots, since they involve just such “locked up” money for such long periods. Nowdays though?
What difference does compounding make? - Check out “The Rule of 72”.
A 6% bond will double your money in exactly 12 years, and NOT “16 years 8 months” which is the schoolboy answer that many give for this type of question.
del949:
Still waiting for Peirre to tell us where I can get 8% plus, 'cos I’ll have some of that
Alas I wont tell, as it would potentially leave me open to issues IF you loose everything in the future. As pointed out by others, a lot of these high yeld bond are risky affairs, not covered by FSA garantees, & the average type of bonds are indexed linked to the stock market performance. So its quite possible to loose the lot. Also the higher the potential return, the higher the risk. Ill stick to playing the stock market in the traditional way (stocks & shares) as I can control my gains/losses.
I do wish Id bought a few thousand Wetherspoons shares, as 6 months ago they where £4 ish a share, now they are running around £5.20 each. A 6 month profit of 25%+ especially as I contribute to their income stream Avis car hire was probably my best earner ages ago, starting at 39p and hitting £8+ .............bailing out at £4 wasnt my best decision, but my nerve broke
The only sure fire way to make a small fortune in haulage is… start with a large one.
Just a thought.
Not a chance, not with a barge pole. I’ve some shares in small local companies and they are yielding well despite the state of the economy. What you also have to take into account is inflation, which once the coming depression bottoms out is going to take off like a scalded cat.
Sir +:
Stobart have a 6 year Bond on sale, fixed @ 5.5% pa.
In a statement to the City, Stobart has abandoned this plan.
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Dieseldoforme:
Sir +:
Stobart have a 6 year Bond on sale, fixed @ 5.5% pa.In a statement to the City, Stobart has abandoned this plan.
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The scheme was slaughtered in the times yesterday and ended with the comment" should keep on trucking" was way off the markets return so would have been a poor deal for anyone who invested
limeyphil:
sounds like the bank won’t lend them any money, but the fans will.
Thats my thinking, after their fiasco over finance for the O/Licence a few years ago during the boom years and Tinkles arrival on the sceen coinciding with some cunning swapping around and revaluing of assetts I’d be very wary.
I’m not sure what their return on investment is but it can’t be very good or else despite the banks being a bunch of ■■■■■ when it comes to providing mortgages, they would be falling over themselves to lend money for a quick return. It ranks alongside their pie in the sky owner drivers scheme.