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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (47)	8/16/1998 5:00:00 PM
From: Ken Brown	Respond to of 15132

bonds yield to maturity has declined but that is because the price appreciation on the bonds themselves have soared Absolutely. That was my point, though it wasn't explicitly stated. What I was trying to say was that I prefer to view bonds based on their current value and yield, as opposed to the coupon rate and initial price. The fact that 9%+ sounds so great, is quantified by the large increase in current value. No matter how you view it, that was one fantastic investment - congratulations! Ken

To: MrGreenJeans who wrote (47)	8/16/1998 5:50:00 PM
From: stock bull	Read Replies (1) \| Respond to of 15132

Mr. GreenJeans, <<I, too, bought 30 yr, 9%+ bonds many years ago, thanks to Bob. I sold them after yields went so low that I felt they simply weren't worth holding. I think that was at about 7%.>> I'm not sure that I understand why you are saying..."I sold them after the yields went so low and I felt they simply weren't worth holding." I assume this was a Treasury Bond, so backed by the US Government. Since the bond paid 9%, and this remains constant until maturity, isn't this a good deal considering that rates have dropped so low. Or, did you sell because the value of the bond has risen, and you wanted to cash in? Stock Bull