# Aviva Bond



## Taxboy (Aug 23, 2006)

Just wondering if any experts here can confirm my understanding regarding this fixed rate investment please https://www.lse.co.uk/SharePrice.asp?shareprice=AE57&share=Aviva-612536

Here is what I think it is but please correct me
This is a fixed rate bond that pays 6% interest based on a £1 issue price for a fixed term. Current price to buy is 124.7 so current yield ignoring dealing costs is 6/124.7 X 100 or about 4.8%

However to offset this there's always the risk that the selling price could drop so if it went back to say 100p whilst I would continue to receive 6p annually I would have lost 24.7p in capital or Aviva goes under then you lose the lot

I'm guessing these type of investments are illiquid compared to standard shares ?

Any input appreciated

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