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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Mark Z who wrote (12236)7/2/2013 12:47:12 PM
From: Jack of All Trades   of 12410
 
I'm not an expert on bonds...

1. Quoted price is in cents, 100=$1.00
2. Currently price is probably lower since rates have risen, meaning bond prices fall.
3. Long bonds pay tax free interest (7.25% in your case) twice a year
4. When bond expires you get face value ($20000)
5. You have significant gain on the price of the bond, you could sell but will have to pay taxes on the gains vs holding and collecting the rest of the bi-annual interest payments.
6. Holding/Selling will depend on your tax implications especially when comes to inheritance.

JMO and not to be taken as any advice to sell or hold.
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