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Thus, the shortest coupon issue, the 8percentt notes of 1992, were unchanged at 100 3/32, for a yield of 7.94percentt.
In the 30-year market, the zero coupon issue was 7.97percentt, while the interest-bearing issue was about 71/2percentnt.
He paid $99.801 for a 6.4percentt coupon issue due February 2006; it closed on Friday at $102.86, and is rated A- by S.& P. A strong market position and increasing demand for spicy and more highly flavored foods let the company generate above-average profit margins and strong cash flow, he said.
Kaufman owns the 6% coupon issue, due Feb. 2, 2007; at a recent $99.75, the yield to maturity is 6.6%.
But this was a zero coupon issue, which means instead of paying interest periodically, they were issued at a discount to par, specifically $55, in January of this year.
Similar(54)
Outside of the traditional Treasury market, analysts noted that yields were unusually high for zero coupon issues.
But every money-back coupon issued sends a message that the biggest supermarket in the land is not setting the pace on prices.
Although such zero coupon issues have been widely available for Treasury securities for several years, this is the first time mortgage-backed securites have been so packaged.
The Treasury itself was an active buyer yesterday, purchasing $1.4 billion of coupon issues with maturities from April 1998 to March 1999, lending some support to prices.
On a trip from New York to Houston, for example, one can now travel round trip for $198 on the discount fares and get an additional $35 off by using a coupon issued by United.
In late trading in the secondary market for Treasury coupon issues, the 61/8percentnotestes due in 1988 were offered at 100 4/32, up 1/32, for a yield of 6.04percentthethe 6 5/8percentt issue due in 1989 also rose 1/32, to 101, to yield 6.25percentt.
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