Buying a Nine Year B3 Bond, Doubling Your Money

MIRANT AMERICAS GENERATION LLC 8.5% of 10/01/2021 yields 10.176% selling for $899.49. The bond has a Standard & Poor’s rating is BB- and a Moody’s rating of B3. The cusp. Number is 60467PAQ7. If this bond was purchase for $899.49 on October 1, 2012, the investor would get $1,016.35 at maturity. That would be $915.84 in interest and $100.51 in bond appreciation. You the investor would get more in interest if you buy the bond between now and October 1, 2012. This company is based in Atlanta, Ga.

To my knowledge this company is owned by GenOn Energy, Inc. (NYSE: GEN). It is one of the largest competitive generators of wholesale electricity in the United States. This company has power generation facilities located in key regions of the country and a generation portfolio of approximately 23,700 megawatts. GenOn is helping meet the nation’s electricity needs.

GenOn’s portfolio of power generation facilities includes baseload, intermediate, and peaking units using coal, natural gas, and oil to generate electricity. The company is headquartered in Houston, TX. But the company is operating in 12 states. It has approximately 3,400 enployees.

By burning a variety of fuels, GenOn is able to optimize generation to match market demand with the most appropriate, lowest cost fuel options.

However, the stock price of this company is in the tank, selling around $2.10 as of March 29, 2012..