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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (11883)	4/22/2000 7:03:00 PM
From: MileHigh	Read Replies (3) \| Respond to of 29987

Jeffrey, This example shows that the 2/15/2004 bonds are trading at $366.80 for a par value $1,000 bond, giving a Yield to Maturity of over 50%. The coupon is 11.375%. Therefore, many believe that G* will not be able to service this debt, thus the high risk assigned to it. (YTM is 50% on a Coupon of 11.375%) Credit rating is junk. You need to buy in 100 lots (100 bonds x ($1000 par value trading $366.80) = $36,680 Approx. If G* is able to service these and pays the coupon, you will receive $100K on 2/15/2004 when you only paid $36K. Nice return and bond holders are in front of common holders (I know you knew that) but if G* is successful the common will easily be a 5-10 bagger IMO... Hope that helps! MileHigh ================================ GLOBALSTAR L P/GLOBALSTAR CAP Coupon: 11.375% Maturity: 02-15-2004 Callable Description CUSIP 379363AK0 Listed? No Ratings Caa/B Industry Telephone Delivery Registered Only Dated Date 02-19-1997 First Coupon 08-15-1997 Pay Frequency Semi-Annual Settlement Date 04-26-2000 Offering Quantity Available 100 (bonds) Order Quantity Minimum Price $36.688 Yld to Mat 50.081 Yld to Call 62.120 (they are callable at a premium) to 02-15-2003 Current Yld 31.005 Call Schedule Date Price Yield 02-15-2002 105.688 90.18302-15-2003 102.844 62.120 Net Money Principal $36,687.50 Acc'd Int $2,243.40 (accrued interest since approx Feb) ------------------------------------------------------- Total $38,930.90 For more information or assistance executing a trade, please call our trading desk toll free at 877.708.7233. DISCLAIMER The information set forth herein was obtained from sources which we believe reliable but we do not guarantee its accuracy. Neither the information nor any opinion expressed constitutes a solicitation by us for the purchase or sale of any security. Prices, yields, and availability are subject to change with the market. Bond Express Query System copyright ¸ 2000 BARRA Inc. All rights reserved.