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To: marginmike who wrote (35415)	3/28/2002 2:09:41 PM
From: Joan Osland Graffius	Respond to of 209892

marginmike, I wish I knew the bond market better to know if the bonds that trade below par move in price faster than the ones one buys at a premium to par. They probably move together - these houses can not give us an advantage. <gg> IMO, it is a trade off if you are looking to maximize cash flow you buy the bonds above par and take a capital loss at maturity, or give up cash flow during the term of the bond and take a capital gain. Bill Gross has been talking about buying the 5 year and getting a capital gain at maturity for icing on the cake. My thoughts are the trade off's are the cash flow from treasuries are not taxable at the state level, but the capital gains are. Kind of depends on what you want. Joan