Mike, they bought Telebanc because what NetBank and Telebanc are doing is very valuable from both a future profit view-point, and from a strategic view-point.
Regarding the bonds, I stand corrected. I should have said, when bonds go down, the interest rates on bonds, in essence, is going up.
In actuality, of course, the bond rate is fixed but to compensate for the low interest rates fixed to the bond, a seller of the bond must offer it at a lower price. That is why when bonds go down, the rate is said to be going up.
Of course, newly issued bonds will usually follow the lead of the existing secondary market, and so ULTIMATELY Bond Rates truly do go up, also.
NTBK: $ 34
VALUESPEC |
