A fellow blogger compared the 4.65% coupon offered with what we could get if we were to park our money in the Singapore Savings Bond (which is risk free) for 10 years. Holding the SSB for 10 years would get us a yield of about 2.8% p.a. I have left a comment that, to be accurate, we should compare the coupon with what we could get in the SSB for 3 years. Of course, the bonds are not strictly comparable since the SSB is really AAA rated as the borrower is the Singapore Government while PREH does not have a rating. The question, then, is whether the coupon offered by PREH's bond compensates us for the risk we have been asked to assume as money lenders. Perhaps, it would be better to compare this with another corporate bond. If we were to compare this offer with another corporate bond, we could compare this ......