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Non-Tech : Income Investing -- Ignore unavailable to you. Want to Upgrade?


To: accountant who wrote (49497)3/5/2023 4:45:24 PM
From: Smart_Asset  Read Replies (1) | Respond to of 52143
 
Re:

Thanks

The calling of the bonds at lower interest rates I am able to deduce. I would guess also that the value on the secondary market would be inverse to rate changes as well. Higher available rates lowering the value of the bonds and vice versa.

There may also be an average life span based on historical calculations of available interest rates. Certainly at some future date one would think it would be called.

My questions would be what if one of the mortgagees defaults?

This link does explain the very limited risk of agency bonds but I'm in the paralysis by analysis camp.

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