Does this then mean that the 25-year bond will have an annual coupon rate of 17.5% and above since it will be issued for the first time and selling at par value?
Thanks Alex for your good analysis please, but any yield below 18.5% for the upcoming 25yr Bond will not be good enough considering that the prevailing 20yr Bond is yielding 17.93%.
Does this then mean that the 25-year bond will have an annual coupon rate of 17.5% and above since it will be issued for the first time and selling at par value?
Thanks Alex for your good analysis please, but any yield below 18.5% for the upcoming 25yr Bond will not be good enough considering that the prevailing 20yr Bond is yielding 17.93%.