TSXV:LRT.UN - Post by User
Comment by
alkhoron Dec 15, 2021 7:19pm
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Post# 34234959
RE:RE:RE:RE:Debentures are paying full interest
RE:RE:RE:RE:Debentures are paying full interestI'm afraid I disagree. A debenture usually pays interest twice a year. If the payment dates are June 30 and December 31, and you buy March 31, you have to pay the 3 months interest for January 1 to March 31 to the seller. The buyer than gets the 3 months interest plus the next 3 months on June 30. I've bought debentures many times it the past and this is exactly how it works
When I purchased the debentures today at $1.80 per $100, the total cost of the transaction was going to be $1,800 for $100,000 worth. The actual cost was about $72,000 for $93,000 worth (order was not fully filled), so it obviously was not $180 per $100 worth.
I'm not sure why the interest was charged. I've purchased Lakeview Hotel debentures and not had interest charged as they had suspended interest payments, same as LRT. Had I not sold off what I had bought, it may have been corrected tomorrow but I wasn't going to take that gamble.