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When interest rates rise, older bonds with lower interest rates are worth less.
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.
The $13 billion auction attracted a yield of 4.77 percent, slightly higher than the yield on older bonds.
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.
Many governments need to auction off new bonds, as France did Thursday, to make good on older bonds whose payments are soon due.
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When the filmmakers paid homage to older Bond adventures, they exploded the proportions.
Therefore, the older bonding programs of other countries may provide successful options and practices for reclamation bonds in China.
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%.
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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