Year 2006 Benchmark Notes(R) Issuance Calendar January February March April Announcement Announcement Announcement Announcement Optional 2-, 3-, 5-, 10-Year Notes 13th 10th 10th 17th May June July August Announcement Announcement Announcement Announcement Optional 2-, 3-, 5-, 10-Year Notes 12th 9th 14th 11th September October November December Announcement Announcement Announcement Announcement Optional 2-, 3-, 5-, 10-Year Notes 8th 13th 13th 13th Benchmark Notes -- Minimum new issue size for noncallable
Benchmark Notes (2 to 10 years in maturity) is US$3.
Perhaps the best way to understand the impact of including a call option on a municipal bond is to look at the value of a callable bond as if it were the value of a noncallable
bond minus the value of the embedded call.
The mean coupon rate for the noncallable
sample is greater than that for the callable sample (10% and 8.
In 2005, Fannie Mae will continue to utilize predefined monthly calendar dates for the announcement, pricing, and settlement of noncallable
0 billion Noncallable
Benchmark Notes(R) -- Minimum new issue size for noncallable
Benchmark Notes (2 years - 10 years in maturity) is US$3.
Callable zeroes, however, will not experience the same price appreciation as noncallable
zeroes due to the negative price impact of the call option.
Indeed, BT state that "the greater is the probability of default, the more new investment tends to 'bail out' the bondholders and hence the more noncallable
debt tends to weaken the investment incentive" (page 1193).
Fannie Mae may periodically engage in buybacks of outstanding noncallable
Benchmark Securities in 2004, except for on-the-run 2-, 3-, 5- and 10-year maturity securities.
Section II provides a numerical analysis of straight noncallable
corporate and Treasury bonds.
The 'AAApre' rating reflects this pledge and that all funds have been invested in direct noncallable
obligations of the Federal Home Loan Mortgage Corporation.
1) Since the call premium is taxed as a capital gain to investor, but is deductible as an ordinary income expense to the firm, they concluded that the expected tax benefit for a callable bond will be higher than for an otherwise identical but noncallable
The notes have a seven-year term and will be noncallable
for the first four years.