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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It's an inflation-linked perpetual bond backed by the US government with less vol and more duration that the S&P, so assuming it was a ~negligible component of the debt structure I expect it would well above the current SPX level, probably with a yield around 1%, so that's 6k
Think you’re answering based on the security paying principal x dividend yield of the index, whereas original question assumes that the security just pays the $ value of the dividends (ie if SPX falls, the coupon is reduced). Only way I can reconcile the difference of opinion.