Who's the issuer?
Coca-Cola Enterprises is the largest bottler and distributor of Coke products. Not to be confused with the Coca-Cola Co., which develops beverages and sells syrups to bottlers, Coca-Cola Enterprises generated sales of $22 billion in the four quarters that ended last September.
What's the interest?
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This issue pays 7.125% on a face value of $1,000, or $71.25 a year per bond, in semiannual payments.
| Row 0 - Cell 0 | How Well Do You Know Bonds? |
| Row 1 - Cell 0 | Best Buys in Bonds |
| Row 2 - Cell 0 | 5 Caveats When You Buy Bonds |
What does it cost?
Think of the quoted price -- 111.707 -- as a percentage of the bond's $1,000 face value. Each bond sells for $1,117 -- at a premium -- because the 7.125% interest coupon is better than the going rate on similar bonds. Brokerage commissions are usually built into the price of a bond. But Fidelity, on whose Web site we found this IOU, tacks a $1-per-bond commission on top of the quoted price.
When does it mature?
As long as Coca-Cola Enterprises doesn't go bust, it will repay bondholders on August 1, 2017.
What does it earn?
The yield to maturity, which is 5.40%, sums up the total return you'll earn on your investment of $1,117 per bond if you hold until maturity. This figure takes into account all the cash payments you'll receive over the life of the bond and the loss of the $117-per-bond premium when you receive the bond's $1,000 face value at maturity.
What's the quality?
A single-A credit rating is solid but not bulletproof. It signals that the company should be able to repay its debts under current business conditions, but it could run into problems if the economy or its industry weakens. The firm's $9.4 billion in total debt works out to a debt-to-capital ratio of 0.5, which is reasonable for its industry. Keep in mind that bond raters are not infallible.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summerThe Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Best Banks for High-Net-Worth Clientswealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market does have regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Until May Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until November 2024 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. So how do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
