KEY INFORMATION
ISINGB0002404191TIDMTR28ExchangeLSEPar Value £100Maturity Date7/12/2028 Coupons per year2 Next coupon date7/6/24 Coupon 6%Income Yield 5.54% Gross redemption yield 4.10% Accrued interest 206.56p Dirty Price£110.04 |
U would like to invest your cash to earn some interest, u need the cash for a special reason at the end of 2028 and therefore cannot risk losing the capital but u would like the interest to re-invest in your Snowball.
Most Government debt (gilts) can be bought thru your broker, AJ Bell charges £5 and u just need to leave an order, which is filled very quickly.
The yield u will receive is 5.54% but u have to pay the holder for the accrued dividend, so the redemption yield is 4.1%.
Next payment 7 June. If u hold to redemption, u don’t need to do anything as the money will be paid into your account. Nearer the redemption date u could probably sell in the market for most of the redemption value. Interest tax free if held within a tax free wrapper. If u wanted to achieve a blended yield of 7% u would need to pair trade it with similar to RECI.
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