LSE retail bonds

With the stock markets poxed,  it seems worth looking into these. Anyone been investing in these already got any views to share?

http://www.londonstockexchange.com/exchange/prices-and-markets/retail-bonds/retail-bonds-search.html

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http://www.londonstockexchange.com/exchange/prices-and-markets/retail-bonds/company-summary.html?fourWayKey=XS0052067583ZZGBPUKCP

Can anyone explain quite how they work?
e.g. this BT one, paying 8 5/8%
It is now trading at 123.35 - 125.35

Issue Date    23 Aug 1994
Maturity Date    26 Mar 2020

Is this costing £1253 for a £1000 investment that pays 8 5/8% each year until Mar 2020?
i.e. 9 times £85.80 (772.20) plus your dough back in Mar 2020
which would make 772.20 - 253 = £519.20



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