P

[Serge]

As dividends are only paid once a week, goat can also only issue shares once a week - if somebody buys them right now at 1.05 he's probably quite in need, so to say...

that's assuming there won't be huge bidwall above

[1713992503]

1713992503

[1713992503]

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[1713992503]

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[brendio]

I agree with MrTeal. There is an inverse relationship between price and yield. The higher the price you pay, the lower your yield. It doesn't change with time. Also, if you pay 1.02 for a 1.00 face value bond, you may have to factor in a 0.02 capital loss to maturity as well, unless you can sell it to a greater fool.

[Gladamas]

Wow... arguing the mathematics of a function... math class anyone? 

[MrTeal]

I agree with MrTeal. There is an inverse relationship between price and yield. The higher the price you pay, the lower your yield. It doesn't change with time. Also, if you pay 1.02 for a 1.00 face value bond, you may have to factor in a 0.02 capital loss to maturity as well, unless you can sell it to a greater fool.

I agree with him as well if you reinvest. However If you just buy 1 bond, the average weekly dividend for that bond after 10 years will be pretty close to 6.499999999%

No, the average weekly dividend will be exactly 0.065BTC per share even without reinvesting. The average weekly dividend will be (0.065/X)*100% where X is the purchase price. If I buy 1 bond for 1.02, what is my dividend in the first week? 0.065BTC. My investment is 1.02BTC. ROI is 6.37% that week. The second week I earn another 0.065BTC. My investment is still the 1.02 BTC. Weekly ROI is 6.37%. My total dividends are 0.13BTC. Average dividend is 0.065BTC. Investment is as always 1.02BTC. Average weekly ROI is 6.37%...... The 520th week's dividend is 0.065BTC. My investment is still the 1.02 BTC. Weekly ROI is 6.37%. My total dividends are 33.8BTC. Average dividend is 0.065BTC. Investment is as always 1.02BTC. Average weekly ROI is 6.37%... Ad nauseam until Pirate defaults, bitcoin becomes worthless or 33.8BTC is enough for me to cash out and buy one of the Virgin Islands, complete with harem of virgins.

[ColdHardMetal]

Looking on GLBSE it shows the asking price at 1.06 plus a fee of 8 btc the first time you purchase a type of share. Why is everyone talking 1.02?

8 BTC? I thought that fee was for listing an asset?

If it really does cost that much to purchase a share, I'm out.

8 BTC is to list an asset.

You pay .5% if you take an order from the order book, and 0% if you place an order in the order book and someone else takes it.

[BinaryMage]

I agree with MrTeal. There is an inverse relationship between price and yield. The higher the price you pay, the lower your yield. It doesn't change with time. Also, if you pay 1.02 for a 1.00 face value bond, you may have to factor in a 0.02 capital loss to maturity as well, unless you can sell it to a greater fool.

I agree with him as well if you reinvest. However If you just buy 1 bond, the average weekly dividend for that bond after 10 years will be pretty close to 6.499999999%

No, the average weekly dividend will be exactly 0.065BTC per share even without reinvesting. The average weekly dividend will be (0.065/X)*100% where X is the purchase price. If I buy 1 bond for 1.02, what is my dividend in the first week? 0.065BTC. My investment is 1.02BTC. ROI is 6.37% that week. The second week I earn another 0.065BTC. My investment is still the 1.02 BTC. Weekly ROI is 6.37%. My total dividends are 0.13BTC. Average dividend is 0.065BTC. Investment is as always 1.02BTC. Average weekly ROI is 6.37%...... The 520th week's dividend is 0.065BTC. My investment is still the 1.02 BTC. Weekly ROI is 6.37%. My total dividends are 33.8BTC. Average dividend is 0.065BTC. Investment is as always 1.02BTC. Average weekly ROI is 6.37%... Ad nauseam until Pirate defaults, bitcoin becomes worthless or 33.8BTC is enough for me to cash out and buy one of the Virgin Islands, complete with harem of virgins.

Long-term yield predictions are really irrelevant anyway - 100 BTC invested now at BS&T and reinvested every week, at 7% interest, would exceed the entire available supply of Bitcoins in less than three and a half years.

[brendio]

For those who disagree with MrTeal, perhaps have a read of http://www.investopedia.com/university/bonds/bonds3.asp#axzz1vfLeO8Ge

It was just the first google result I came up with. I've only skimmed it, but it looks to provide a better explanation than I could give right now for those who are interested.

[Serge]

please update your contract on GLBSE from 5% to 6.5%

[MrTeal]

Okay I stand corrected, I was using the wrong terms. I will not explain what I was thinking as it is not really important but we are on the same page, and over all the .02  BTC will mean almost nothing. However what is this plan of yours for this island and harem?  I see a new GLBSE listing being worked out very soon!

Heh, personal use only. A publicly traded harem is just another name for a dirty whorehouse.

Edit: On an unrelated note, I see someone bought TYGRR-P @ 1.1BTC. For the life of me I can't figure out why anyone would do that when they can just wait half a week and have Goat fill the order at 1.02BTC.

[molecular]

Okay I stand corrected, I was using the wrong terms. I will not explain what I was thinking as it is not really important but we are on the same page, and over all the .02  BTC will mean almost nothing. However what is this plan of yours for this island and harem?  I see a new GLBSE listing being worked out very soon!

Heh, personal use only. A publicly traded harem is just another name for a dirty whorehouse.

Edit: On an unrelated note, I see someone bought TYGRR-P @ 1.1BTC. For the life of me I can't figure out why anyone would do that when they can just wait half a week and have Goat fill the order at 1.02BTC.

Maybe that wasn't clear at the time. Or maybe the buyer didn't know this.

[rdponticelli]

Okay I stand corrected, I was using the wrong terms. I will not explain what I was thinking as it is not really important but we are on the same page, and over all the .02  BTC will mean almost nothing. However what is this plan of yours for this island and harem?  I see a new GLBSE listing being worked out very soon!

Heh, personal use only. A publicly traded harem is just another name for a dirty whorehouse.

Edit: On an unrelated note, I see someone bought TYGRR-P @ 1.1BTC. For the life of me I can't figure out why anyone would do that when they can just wait half a week and have Goat fill the order at 1.02BTC.

Maybe that wasn't clear at the time. Or maybe the buyer didn't know this.

There's plenty of people who just throw coins at things. Without even the slightest clue of what they're doing...

[MrTeal]

If anyone else wants the bonds at 1.1 or even more please PM me and I am sure we can work something out 

But sorry to the guy who paid that much. Yeah, maybe this was not all clear at the time. Sort of a work in progress, breaking new ground here. At least in 10 days they will start making money.

Hey Goat, do you think you could update the OP to include when in the week you plan to issue new bonds, how many you plan to issue and at what price? Were you thinking you would just fill everything down to 1.01/1.02 or is there going to be limit on the maximum quantity?
Thanks.

[rdponticelli]

If anyone else wants the bonds at 1.1 or even more please PM me and I am sure we can work something out 

What a tempting offer, I think I'll throw some coins into it... 

Yeah, maybe this was not all clear at the time. Sort of a work in progress, breaking new ground here.

Yes, to be fair, this offer has changed so much, so quickly, that I really doubt anybody knows exactly what it is. Not even Goat himself... 

At least in 10 days they will start making money.

If everything goes as expected...

[Mousepotato]

It will be right after I pay the dividends. So Tuesdays 5PMish Thailand time.

I see there being no need to limit the number of bonds at this point. If there is demand I will send it over to Pirate until he tells me to stop.

Thanks.

So do we just sit at the TYGRR-P page doing F5-F5-F5 til we see a bunch show up for sale?  How would an unlimited amount of bonds show up anyway?

[Sukrim]

No we put up a buy offer at 1.02 per share and automagically it will get filled after dividends were paid by goat.

[MrTeal]

No we put up a buy offer at 1.02 per share and automagically it will get filled after dividends were paid by goat.

That's how I understand he plans to do it as well, just buy up all bids down to 1.02.
The only reason you might want to continually F5 is if you want to reinvest the dividend between when it gets payed out but before he does the weekly buy.

[Mousepotato]

Thanks for the explanation, guys I'm new at this GLBSE stuff.

[REF]

No we put up a buy offer at 1.02 per share and automagically it will get filled after dividends were paid by goat.

That's how I understand he plans to do it as well, just buy up all bids down to 1.02.
The only reason you might want to continually F5 is if you want to reinvest the dividend between when it gets payed out but before he does the weekly buy.

Good Point. Dividends should be paid before shares are given out so current holders have time to reinvest.

[Sukrim]

...and that dividends don't get diluted/have to come out of goat's pocket.

[conspirosphere.tk]

I am sorry to say that I lost my trust in Goat, since he changed his OP a number of times, offering different rates with or without insurance, and at one point even offering a Pre-IPO at 0.99, then vanishing after promising in a PM to follow up on a request of mine.
Moreover, lowering more and more his TYGRR-Bank bond interest rate is not nice.
I am now liquidating anything Goat in my portfolio at fire-sale prices. If you disagree with me put your money where your mouth is and buy.