buy the farm, make a killing

Mar 12, 2010 0 Replies

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Get rich quick: the gist is that an investor partners with someone terminally ill to purchase a corporate bond, at discount; when he croaks, the partner, named as an heir, cashes the bond, for healthy profit.



It's clever, if it works, but I I find it enigmatic - what is the cause-effect relationship? Why does sudden death enable the purchase of a bond below par, then suddenly redeemable at par?.


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