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4% - 9 year - stepped callable CD
08-08-2017, 08:17 AM
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#1
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 437
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4% - 9 year - stepped callable CD
Hi All,
I'm looking to add to my CD ladder, and trying to get the best rates.
I saw this Brokered Callable Stepped CD for 99 cents on the dollar.
coupon rates:
09/20/2012 2.25
09/20/2017 2.50
09/20/2022 3.00
09/20/2024 5.00
09/20/2025 8.50
The yield to maturity is 4% The yield to call is 12% and worst yield is 2.736%
Edit: 10 year cd. 2027 maturity... I'm usually very good at math! haha
I can't quite get a good picture of what the predicted rates are for various call times, I guess it goes down then up over the years. Is there a tool where I can plug in these numbers?
Anyway, also wanted your thoughts on this type of CD. It seems like it's pretty good both short and long term... but it all depends on when and if it's called.
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08-08-2017, 08:20 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,236
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I can't believe it's that much in 2024/2025. That's great but just a surprise to me.
You might post on bogelheads.
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The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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08-08-2017, 08:21 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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5 year brokered CDs are at much less than 3%, so it will be called.
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08-08-2017, 09:11 AM
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#4
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 437
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Well, great, if it's called early, it's like a 12% CD. I suspect it will be called, the question is when.
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08-08-2017, 09:18 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,236
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Quote:
Originally Posted by jetpack
Well, great, if it's called early, it's like a 12% CD. I suspect it will be called, the question is when.
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Huh? How do you figure 12%?
__________________
______________________
The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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08-08-2017, 09:23 AM
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#6
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 437
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Well, if it's at next call time. Since I'm only paying 99 cents, they give back full face value.
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08-08-2017, 09:45 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,236
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Quote:
Originally Posted by jetpack
Well, if it's at next call time. Since I'm only paying 99 cents, they give back full face value.
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I don't see the 12% if it's called but I am not a math expert or a financial analyst. Whatever it is it seems like a good deal to me. Good luck with it!
__________________
______________________
The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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