TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Mar 09, 2024 11:22am
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Post# 35924424
RE:Lets say Prefer "K" resets next month. It's current yield is
RE:Lets say Prefer "K" resets next month. It's current yield is
Crazy wrote "Lets say Prefer "K" resets next month. It's current yield is 9%. It's Reset Yield looking to be 23%. "
1) That does NOT exist. Why waste your time and mine and all readers?
2) "you telling me you don't care about reset yields and that current yields is all that matters????" Read my posts. I never wrote anything like that!
3) You clearly do not understand the value of time and how to discount a future dollar. A $1.00 dividend payable two or three years from now is NOT worth $1.00 dividend payable today. You cannot compare the two unless you apply an adequate discount to future potential dividends.
4) Finally, you do not know - nobody does - what interest rates will be two or three years from now at time of eventual reset. Will the economy be booming with restricting high interest rates or will we experience a recession or economic slowdown with stimulating low interest rates?
5) One more time: "A bird in your hand is worth two in the bush" If you do not understand that concept there not much anyone can do for you.