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What does it mean "Cudahy Packing Company 5s, due 1946"?

Personal Finance & Money Asked by Ashish Burnwal on January 9, 2021

I was reading a bond description from "Security analysis" and found this excerpt "Cudahy
Packing Company First Mortgage 5s, due 1946." Can some one explain me please the meaning of this sentence. I understand "Cudahy Packing Company" is the name of the company and they have issued a 1st Mortgage bond, what I didn’t understand is last words i.e. "5s, due 1946".

EDIT 1: Updated question as per suggestion.

One Answer

Let's take an example — "XYZ Widget Corporation 5s, due 2030":

  • "XYZ Widget Corporation" is the issuer name.
  • "5" is the coupon rate.
  • "s" means semiannual coupon payments.
  • "2030" is the maturity year.

Correct answer by Flux on January 9, 2021

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