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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: willcousa who wrote (163539)4/5/2002 9:56:57 AM
From: GVTucker  Read Replies (2) | Respond to of 186894
 
Don't think of it as an interest rate. Think of it kind of as a pseudo protected put. The "interest rate" is high because the price of call and put options for Intel is high, owing to Intel's volatility. And I guarantee that the issuer will hedge the debt. While I haven't looked at the specifics of this issue, there's risk to the price of Intel common going forward, and investment banks aren't in the business of taking price risks on stocks.


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