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To: i.mkat who wrote (10784)	7/2/2014 3:42:59 PM
From: YieldHog	2 Recommendations Recommended By brehm233 KEN2CWL Respond to of 52102

Re: re GST-B YTC factors in the security is trading at 15% over par, so you are losing approx 3% per year of price (on a straight line basis) between now and the call date

To: i.mkat who wrote (10784)	7/2/2014 4:04:55 PM
From: Jerrymac	3 Recommendations Recommended By i.mkat MRothaus1 xj Respond to of 52102

Re: re GST-B I always look at YTC/YTM as a decision whether to sell or buy. In this case, I ask if I can replace an "exit yield" ( 6.57 ytc) with a better return on a yield basis. Of course you always give something up in a swap (duration, credit quality, call protection etc). A possible candidate might be PPHMP. You pick up a better current yield, YTC, similar call protection. Probably give up credit quality, monthly pay vs quarterly and of course PPHMP has an equity conversion feature. I do like risk/reward in PPHMP and feel I'm being amply compensated for the risk involved. I also own GST.B cheap (~24.65) and reluctant to part with it. So many questions with too many answers! Great board! & Happy 4th to all.

To: i.mkat who wrote (10784)	7/2/2014 5:12:24 PM
From: Lord Xot	7 Recommendations Recommended By brehm233 camroc325 KEN2CWL MRothaus1 tjon72 and 2 more members Read Replies (2) \| Respond to of 52102

Re: re GST-B You have to figure in the loss of $3.66 at call. If i use 4.25 years till call, i calculate a YTC of 6.78%....close enough. It's important to understand this concept. Any pfd at par or under will out earn GST-B with a current yield of 6.79% or better, assuming the issue is called. Some accrued dividend at call will improve the YTC figure somewhat. If i add one monthly dividend to the price at par, the YTC figure changes to 7.03%. But for an apples to apples comparison, just use par. I would sell this issue and pick up something at 7.5% or better, at par or under. Taxes on gains would figure in though and have to be considered in the calculations. In IRA's, i'd sell yesterday.........................................................Xot