Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 232.49

+0.2%

Dec 30 3:59 PM EST

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To: Jan Crawley who wrote (3981)	5/5/1998 10:53:00 PM
From: Bilow	Read Replies (3) of 164684

Hi Jan Crawley; I'm confused re: The zero-coupon notes priced at a discount of 61.507 percent of par. The notes don't pay interest until Nov. 1, 2003 My confusion is that I was sure that zero-coupon notes don't pay interest, but these notes are supposed to start paying interest (presumably twice per year) after the first five years. A 10-year z-c bond at 10% has a current value of 38.554%, or a discount of 61.446% from par. This more or less jibes with the given discount of 61.507%. This puts the face value of the 10-year zero coupon at $845 million. Anyway, I think that a bond selling for a discount of 61.507% of par, is one that sells for 38.493% of par, thus the face value of the bond is more than $800 million. By the way, the reason for the decrease in volume for AMZN is that the day traders (of which I am one) have moved on to KTEL and the BioTech stocks. This is the last frothy heaves of the dying bull's life, and the long term investor is well advised to get run far away from this market. -- Carl

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