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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (26887)	12/12/1999 7:45:00 AM
From: Jay Lyons	Read Replies (1) \| Respond to of 43080

>>You buy a bond for $500 @ 8% intrest, When the intrest went to 4% that bond was only worth $250 now. So either I was mistaken or the bank clerk was..<< My understanding is that the value of the bond changes on the open market with the rise and fall of interest rates, but that if you hold the bond to maturity, then you can redeem it for full face value. Also, in the example you showed, my understanding is that the value of the bond on the open market would rise if interest rates fell, as it now pays more than the market rate. Who was it that used to always sign off with "But What Do I Know?"

To: AlienTech who wrote (26887)	12/12/1999 8:07:00 AM
From: Jay Lyons	Respond to of 43080

>>Anyone know about US savings BONDS?<< 007-jamesbond.com

To: AlienTech who wrote (26887)	12/12/1999 9:00:00 AM
From: LastShadow	Read Replies (1) \| Respond to of 43080

Not a US Savings Bond, Alien. If you are buying/trading corporate bonds through E*Trade or the like, then what the clerk told you is correct. however, if you are buying US Savings Bonds, then say you got a $50k bond (Maturity value) for $37.5k, and decide to redeem it in a few years instead of waiting the full term, then you would get how much the bod had appreciated during that time at the rate established at the time of purchase. See publicdebt.treas.gov buy yhem direct from theTreasury here: publicdebt.treas.gov Also see frbsf.org for Treasury securities, which might be a better investment depending on your tax situation. Smart Money's Bond allocation system works pretty well also: smartmoney.com and finally: view.womenswire.com lastshadow