Bond Investment in GTE North Inc.

Since the pickings in the short term and intermediate corporate bond market is pretty slim, we have to go out to the late 2020s. Let’s look at a company that I do not own, GTE North Inc. They have a bond that is S&P BB with a Cusip. Number 362337AK3. It pays twice a year.

GTE North Inc. 6.73% of 02-15-2028

It has an YTM of 9.089% and matures on Feb. 15, 2028. That means that if you bought the bond on April 15, 2012 at $803.50, you would get $196.50 in bond appreciation and $1,009.50 over 16 years. That means on an $803.50 you could make $2,019.59 by February 15, 2028. If you are 50 or younger, this would be a good investment in your IRA.

Who is GTE North Inc.?

Frontier North, Inc. is a local telephone operating company owned by Frontier Communications.

History

Frontier North was originally founded as Contel North, Inc., incorporated in Wisconsin in 1992.

GTE acquisition of Contel

Contel was acquired by GTE in 1993. Following its acquisition by GTE, Contel North was renamed GTE North, Inc.

In 1993, Iowa, Missouri, Minnesota, and Nebraska were split off from GTE North into a new company called GTE Midwest, Inc. ConTel of Illinois, ConTel of Indiana, ConTel of Pennsylvania, and ConTel Quaker State were all merged into GTE North.

Acquisition by Verizon

In 2000, parent company GTE was purchased by Bell Atlantic, becoming Verizon Communications. At this point the company's name was legally changed to Verizon North, Inc.

Sale to Frontier

In 2009, Verizon Communications created a company, New Communications ILEC Holdings, to be sold to Frontier Communications. Verizon North was included with the new company. Frontier purchased the company in 2010. Verizon North's operations in Pennsylvania were spun off into a separate company called Verizon North Retain since those operations were not included in the sale to Frontier. That company was merged into a new company named Verizon North in 2010. The sale became final July 1, 2010, and the company's name was changed to Frontier North, Inc.

Source

The description above came from the Wikipedia article GTE North.