"As such, based on todays 90 day BBSW of (as an example) 7.2%, then the notes will pay for the first 90 term 9.7% fully franked - 13.85% grossed up."
9.7% is the grossed up amount. Actual payment = 9.7% x 0.7
A preference share is a share, it ranks below note (which is debt), but above ordinary shares.
"As such, based on todays 90 day BBSW of (as an example) 7.2%,...
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