Brazil Federative Republic 11% of 8/17/2040

Brazil, officially the Federative Republic of Brazil, is the largest country in both South America and the Latin American region. It is the world's fifth largest country, both by geographical area and by population. It is the largest lusophone country in the world, and the only one in the Americas. A Lusophone (or lusophone) is someone who speaks the Portuguese language either as a native speaker, as an additional language, or as a learner.

If you want to invest for your retirement, consider this bond;

 

Brazil Federative Republic 11% of 8/17/2040

 

 If you don't plan to retire for another 25 years, I suggest Brazil federative Republic bonds giving 11% interest until 8/17/ 2040. You will have to pay a premium for the bonds (more than $1,000). But you get $110 per year for 26 years.

 

That means that for one bond, you will collect $2,860.00 over 26 years.

 

Moody's rated the bond at Baa2. Standard and Poor's rated the bond at BBB-. These ratings are just short of investment grade meaning that for the money that you would be getting, you have a relatively high degree of safety.  

 

The only big danger that I see in purchasing this bond is that it is callable starting at  08/15/2014 at $1,000 per bond. That means that if you purchase the bond say at $1,100 and they call in the bond, you can lose $100 when called in but you will keep the interest up to the day they call the bond.   

Let me add that just because the bond is callable on 08/15/ 2014 does not mean that they will call your bond in at that time. They may not call your bond in at all.

If you buy the bond at par or below par, you do not have a call risk. The closer you buy your bond to par ($1,000), the less risk that you have.  They may call in your bond in 2025, 2035, or 2037. If that happens, you would have made in interest enough to cover your call risk.

Here is your biggest risk that you have with this bond.