I am thinking of putting some money aside for around 12 months, and earn good interest by purchasing some floating rate notes...Either
NABHA (9.048% or WOWHB (8.44%).
Now as I understand it I can purchase (or sell) these notes on market at any time. While I hold them, I will receive the coupon rate as a payment per quarter (for these ones anyhow).
Are there any risks to be aware of?
Do I have to hold these securities until maturity? I notice there is plenty of depth on the buy and sell side, so does this mean I can just sell into these if needed later on, just like selling standard shares?
Am I correect that the Bond amount moves inverse to yield? If the interest rate goes up, the capital amount of the security goes down? and vice versa?
I can get approx 6.5% through an ING account, but the return on these floating notes obviously looks more attractive.