unsecured so a bank wouldn't buy it even though it is rated just above junk.
callable at any time so it won't appreciate if rates rise.
already selling below par by 3 plus % which you would get back if it were called.
it is not for a mature person. rather it is as risky as a stock, but with no
potential for appreciation, so i would never put more than 2% of net worth in it
if rates were not falling and inflation was not imminent.
you should not buy it unless you learn more about bonds.
the bond is a few notches higher than junk, A bonds do not pay 7% yield.
It is not callable and if it would you are gaining some when it is called, BC you buy it under par.
It is guaranteed by SCCO, which means that you are loosing only if company goes under
and even then you are first in line to get some money.
Of course if you are planning to trade in bonds - you are going to loose.
You can buy it for income and hold it to maturity.
If not you, your estate will get the full value at maturity.