Deutsche Telekom stock bond: 8% interest p.a., regardless of the share price

Deutsche Telekom stock bond: 8% interest p.a., regardless of the share price

Rising interest rates don't usually mean good times for stock investing. In such times, investors are more likely to look for attractive interest rate offers. A popular combination of both is the equity bond. This is a bond issued by Deutsche Telekom and offered by the major British bank HSBC. The bond has a term until July 26, 2024 and offers an interest rate of 8 percent per year, regardless of the development of Deutsche Telekom shares.

The bond can be repaid in two ways. If the Deutsche Telekom share price is at or above the base price of 18.40 euros on the valuation date, July 19, 2024, the bond will be repaid 100 percent. However, if the share price is below the strike price, the repayment takes place in the form of shares resulting from the subscription ratio.

Stock bonds are an attractive alternative in times of low interest rates. A particular advantage is that investors can even benefit from a slightly falling share price. This means that investors can fully benefit from this form of investment, even if the share price falls slightly.

The Deutsche Telekom stock bond presented offers investors an interesting interest rate of 8 percent per year. It enables investors to benefit from attractive interest payments, regardless of the price development of the share. The repayment is made either at 100 percent of the nominal value or in the form of shares, depending on the price development of the share on the valuation date. It is important to note the risks of this form of investment, as there is a significant risk of capital loss if the price of the underlying asset falls or the issuer becomes insolvent.
According to a report by www.deraktionaer.de