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Politics : Ask Michael Burke

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To: Lymond who wrote (60978)5/28/1999 9:53:00 AM
From: Lymond  Read Replies (1) of 132070
 
The two T issues you quoted are callable in 2001 and 2002. Since both are premium bonds, they trade with fairly short option-adjusted durations. Accordingly, their option-adjusted yields are naturally lower than nominal yields to maturity.

FYI -- here are current spreads on some long-dated non-callable corporates

AT&T + 115 Tyco +123
Sprint +145 Motorola +125
Lucent +100 Ford +129
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