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Is it not also that they will pay you a 5.3 percent dividend every year until repaid? Not that I really know much about this so likely wrong!



The coupon (dividend) is 5.3% per year, and the bond repays in about 7 years, while trading at a 11% discount.

As a first-order approximation, you can imagine that you are getting paid 5.3% + (11% / 7 years) = 6.87%.

A slightly more accurate calculation shows that yield is actually closer to 7.36%. You can find the bond here:

http://markets.businessinsider.com/bonds/tesla_incdl-notes_2...


Yes Tesla's latest unsecured bonds have a coupon rate of 5.3% which they pay biannually. So for a bond with a face value of $1 they will pay you ~2.6 cents every 6 months.


Yes, they pay interest + will (hopefully) repay capital at the expiration date.




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