Poll: Suppose the U.S. government raised funds w/ a special treasury security that pays a coupon guaranteed to be equal to the aggregate dividend of the S&P 500. Right now, that's ~$14 per quarter, $56 for the year. What price would the treasury security trade at?
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Surprised so many people think it’s remotely the same price. How do we create this and sell it to them so I can use it as a hedge?
Would happily do this trade with you, except I would be taking a massive credit risk. Maybe we can figure out something with an escrow account...
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How would this be better for you than just owning SPY?
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@EconomPic and I disagreed about how the coupon was calculated -- I thought (nominal dividend / SPX) * principal whereas he thought it would be (nominal dividend * $1) -- leading to different conclusions on its value - Show replies
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