Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jon Koplik who wrote (11891)	4/23/2000 11:48:00 AM
From: JGoren	Respond to of 29986

Correct on even migration. I didn't get out a financial calcutor and calculate it exactly; I was just trying to get the gist of the annual rate of return on cash basis and the idea you have to add in the repayment of principal at the maturity date.

To: Jon Koplik who wrote (11891)	4/24/2000 9:49:00 AM
From: Jeffry K. Smith	Read Replies (1) \| Respond to of 29986

Thank you very much Jon. I do have another question or two. Because these bonds (like the vast majority of bonds) are NOT "zero coupon bonds" -- they promise to pay an interest payment each six months throughout the life of the bond, and then a re-payment of the principal (and, the last interest payment, too) on the final maturity date. So, in other words, the G* bonds are NOT zero coupon bonds - and by not being so G* promises to pay semi-annual interest, payment of which, because of the co.'s condition in the future, may be delayed until near the maturity date - right? If G* cannot make their final interest and full principal payment at the specified date is a bondholder left holding the bag entirely? Thanks again, Jeff Smith

To: Jon Koplik who wrote (11891)	4/25/2000 11:37:00 AM
From: RalphCramden	Read Replies (1) \| Respond to of 29986

Jon, can GSTRF legally buy back its own bonds on the open market? It would seem to be much more cost effective than "calling" the bond. I understand that GSTRF is in no position to spend cash on calling or buying bonds. I am just trying to understand the market. In the event they had cash they wanted to use to reduce debt, they can buy the bonds on the open market, and they would only call the bonds back if that was cheaper than buying them on the market? Thanks Ralph