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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: SAM who wrote (20140)	6/27/2014 10:45:10 AM
From: deeno	Respond to of 34328

also known as a flower bond. the issuer allows the bond to be put back at par to it on the owners death. Most CD's work that way. You can even buy bonds at a discount and get back par (though death is a tough price to pay), with rates where they are now very few are at a discount. You do have to be a bit careful as there can be limitations to how much in total an issuer must take back in a given year and being held in a trust sometime affects your ability to put back. Best to read the full indenture to see the actual put feature on the bonds or ask specifically to your broker what the death put terms are.