http://coins.heritagegalleries.com/common/view_item.php?Sale_No=364&Lot_No=15547&src=pr#Photo Why is this being sold? If I understand it correctly, the outstanding coupons are worth more thant the 60K premium spent on this? Ruben
Perhaps you didn't notice that the bond was Therefore no interest accrued after that date, and the coupons have no intrinsic value. :headbang:
Possible I suppose, but I doubt it. A million dollars is a lot of money, even when you can afford it.
Face value - $1,000,000 if it is presented for payment before the close of business on February 15, 2047. After that - bupkis.
At last count, there were over 8 million American households with sufficient net worth, aside their homes, to have purchased this item. There is an entire class of people who look at auctions like this with only the degree of interest determining whether or not they bid, as cost isn't a consideration.
No you aren't Speedy, you're in the same group as the other 245 million of us! lol, you are unique in other ways than net worth though!
No but the coupons are worth more than the value of the bonds sale. Ruben BTW - A Million dollars aint what it used to be. Nearly everyone I know has assets worth more than a million if you include their home.
I thought they were the same as the bond.... Maybe not to you....but around here that is nice bit that most of us will never see.... Most people I know house would be worth $50,000+ (and that is low around here...I'm sure most houses cost up around $100,000+)...that is for a nice size house...there is less than a hand full of "millioniares" around here that I know of....I'm sure I don't know of all of them....at times people in my Family have been in that class. Speedy
Let me add to that...most people I know own Farms...I was saying that the house alone was worth $50,000....once you count in the land....its lots more. I don't think KY Land is cheap....anyway...back to coins... I have an old Stock Certificate that kindof looks like this...its been cashed in but is still cool! Speedy
Since a callable bond is >>by definition<< one how can the coupons, which can no longer be surrendered to the issuer in exchange for further interest payments, have any further value?
They were nevewr surrendered in the first place and are still valid for the interest they earned on the date they were supposed to be surrendered..
no On a coupon bond you cash in coupons seperately for their value as interst payments. Are those coupons woht 32K each or something like that. Each one is a value of $32K after the date they mature. Its not like a savings bond. Ruben
Take a close look at the picture - there are two, and only two, valid coupons (dated Auigust 15, 2001 and February 15, 2002), and they are worth $38,125 each. That means the total face value is $1,076,250, so at a final price of $1,063,750, including his 15% premium, the buyer got a very small bargain - about 1%. On the other hand, the seller tanked. Besides the loss of profits from not investing his money for 3 years, 9-1/2 months, he gets only $925,000 less his seller commission for a loss of at least $151,250 (14%+). I don't know about the rest of you guys, but I could fill a bunch of holes in my gold collection for that much cash.
