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When the filmmakers paid homage to older Bond adventures, they exploded the proportions.
The action moved seamlessly from one spectacular frame to the next, continually delighting and surprising the audience, as designer Ken Adam and director Lewis Gilbert created a sci-fi fantasy world that could compete with "Star Wars". When the filmmakers paid homage to older Bond adventures, they exploded the proportions.
So the market price of the older bond must decline, at least initially.
The simple reason: If new bonds yield, say, 2.7%, no investor would pay full price for an older bond that yields, say, 2%.
A: Without giving too much away, Skyfall takes everything we liked about Casino Royale -- the grittier and more realistic Bond -- and combines it with everything we missed about the older Bond movies, namely: humor, nostalgia, and a complete absence of scenes in which Daniel Craig has his scrotum smashed.
Given a choice between an older bond selling at a discount and a new issue at par, both with the same current yield and quality, choose the older bond selling at a discount.
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When interest rates rise, older bonds with lower interest rates are worth less.
The $13 billion auction attracted a yield of 4.77 percent, slightly higher than the yield on older bonds.
As rates rise, older bonds with lower coupons are worth less to their holders.
Since the older bonds coming due in March are governed by Greek law, such procedures are an option.
Moreover, because Fannie's and Freddie's older bonds are so widely held, as those bonds decline in value, many people will see their portfolios decline.
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CEO of Professional Science Editing for Scientists @ prosciediting.com