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Author: arlr Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: What would you do? Date: 8/24/2001 4:46 PM
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---The larger question is how does a fixed income investor make money when interest rates are rising? Can you invest in interest rate futures? Can you sell bonds short? What else is out there? ---


The gain after taxes on munis can be calulated against the lost interest after the sale and until re-invested.

Example: Cost Basis $100,000 Sell for $120,000 Gain = $16,000
Assume interest of $5,600 = 2.8 years less after tax on Money Market that it can be reinvested at breakeven.

I do this with CEF Munis.
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