1 Answers: T for Yield?

Question

T is trading at a significant discount to VZ and has a yield of around 6.5%; what is the catch to placing your money here? T seems to trade like a convertible bond with a high yield and some equity upside.

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Anonymous 5 months 1 Answer 67 views 0

Answer ( 1 )

  1. I assume you are referring to treasury bills and yes they are a very good investment. You can place your money in 28 day t bills right now and I think it is between 2 -3% return. Which is good considering it’s backed by the US government.

    However for the 6.5% you are talking about that might be a twenty year bond. In which case that may be quite some time to lock up that capital.

    Compare it of course to have investing in a Vanguard ETF ten years ago where your profits would be far more than having purchased treasury bonds.

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