Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
Hi all,
I have never bought a secondary market brokered CD (on vanguard) before. I currently see a CD (cusip 94986TV61) for Wells Fargo Bank that has a coupon of 3.0% matures on 6/26/2029 and is Callable 09/23@100. It says it is a Multi-Step Coupon with a yield to worst at 5.049%. It has a bid at 6.879. So, here are all my questions:
(1) if I wanted to buy this CD, can I place a bid higher than the asking price of 5.049%? I cannot find where on the Vanguard page I can offer a higher bid?
(2) Since it says yield to worst is 5.049%, I assume I do not need to worry about the fact that it is a multistep coupon since as long as I hold it until maturity, I am guaranteed 5.049%. True?
(3) Since the original coupon is 3%, my understanding is that this CD will likely never be called, and I can lock in 5.049% for 6 years (or higher if I can bid a higher % (see question 1). Is my understanding correct? Seems like a good deal to me since I would be thrilled to lock in over 5% for over 5 years.
I have never bought a secondary market brokered CD (on vanguard) before. I currently see a CD (cusip 94986TV61) for Wells Fargo Bank that has a coupon of 3.0% matures on 6/26/2029 and is Callable 09/23@100. It says it is a Multi-Step Coupon with a yield to worst at 5.049%. It has a bid at 6.879. So, here are all my questions:
(1) if I wanted to buy this CD, can I place a bid higher than the asking price of 5.049%? I cannot find where on the Vanguard page I can offer a higher bid?
(2) Since it says yield to worst is 5.049%, I assume I do not need to worry about the fact that it is a multistep coupon since as long as I hold it until maturity, I am guaranteed 5.049%. True?
(3) Since the original coupon is 3%, my understanding is that this CD will likely never be called, and I can lock in 5.049% for 6 years (or higher if I can bid a higher % (see question 1). Is my understanding correct? Seems like a good deal to me since I would be thrilled to lock in over 5% for over 5 years.