What did I do wrong?
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What did I do wrong?
I purchased 100K of treasury notes CUSIP 912828D64. It says I'm down $254. I know it has something to do with the coupon, but I don't understand how to account for that. .5% coupon in Aug and Feb.
- MachineGhost
- Executive Member
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- Joined: Sat Nov 12, 2011 9:31 am
Re: What did I do wrong?
Where did you buy it? You may just be seeing secondary market flunctuations. Yields are rising because of the expected Fed rate increase next week.Matthew19 wrote: I purchased 100K of treasury notes CUSIP 912828D64. It says I'm down $254. I know it has something to do with the coupon, but I don't understand how to account for that. .5% coupon in Aug and Feb.
Last edited by MachineGhost on Tue Dec 08, 2015 10:18 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: What did I do wrong?
Through Fidelity's bond desk
- Mark Leavy
- Executive Member
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- Location: US Citizen, Permanent Traveler
Re: What did I do wrong?
.5% of 100K is $500. The last coupon was in August so you are 3 months into it (i.e. 25%). So... $125 of your $254 is the coupon interest that you bought. That will be made up to you in February. The other $129 seems pretty reasonable for buy/sell spread on $100K and/or broker's fees.Matthew19 wrote: I purchased 100K of treasury notes CUSIP 912828D64. It says I'm down $254. I know it has something to do with the coupon, but I don't understand how to account for that. .5% coupon in Aug and Feb.
In other words, I think you did just fine. Not much to worry about.