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Strategies & Market Trends : Sharck Soup

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To: besttrader who wrote (20189)5/3/2001 11:32:55 AM
From: wgh613  Read Replies (2) of 37746
 
Zero Coupon Bonds bear no interest.They are priced at a discount reflecting current interest rates.You can't lose any money if you hold it for the lifetime of the Bond.But Zero Coupon Bonds fluctuate with interest rates.If interest rates move up the Bond will go down.I guess Buffet belives interest rates will go down,therefore increasing the value of the Bond.

Manny T.
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