From THE HINDU group of publications
Sunday, December 09, 2001
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From THE HINDU group of publications Sunday, December 09, 2001 |
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ICICI Money Multiplier Bond: Buy
Recommendation: Buy
Reshma Krishnan
This bond, issued by ICICI in October 1998 at Rs 4,000, has three investment options.
According to the offer terms, the bond is redeemable at Rs 8,000 on December 18, 2003. It now trades at Rs 6,001. If bought at Rs 6000, the YTM is 15.47 per cent.
Investments can be made as long as the total transaction cost is less than Rs. 6,300. It the total transaction cost is around Rs 6,300, returns will be in the 12.8 per cent range.
This is superior to many fixed deposit options. The bond is volatile and the timing is important for the investor.
Given the issuer and the convenient two-year time-frame, investments can be made.
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