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URL:
http://boards.fool.com/i-strongly-agree-with-foobars-comments-but-wish-15567748.aspx
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| Subject: Re: zero coupons | Date: 8/15/2001 10:29 AM | |
| Author: pauleckler | Number: 1947 of 34965 | |
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I strongly agree with foobars comments, but wish to emphasize one aspect. If you bought zeros when interest rates were high, now that they are low they may have appreciated so you have received most of your return. That could create a situation where from now to maturity, the additional interest will be small. In that case, selling the bonds could be in order. But make sure you calculate your yield to date based on your dealers offer for the bonds vs yield from purchase to maturity. |
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