The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: California Bonds||Date: 5/23/2009 1:13 PM|
|Author: AngelMay||Number: 27612 of 35565|
If you buy a bond for $1,100, you will only get $1,000 back when it matures, or is called. If it gets called before you recieve one hundred dollars in interest payments, you will lose money on the transaction.
So, at maturity you just get back 1000 for the bond no matter what you paid for it? Issuing company doesn't care, I guess, at what level others value their bonds along the way -- they only care what the issuing price of the bond was (and that's what they return)?
And question: if price of bond is $1000, why do I see $100 in the Vanguard form? THAT'S very confusing -- why would they want to confuse people? I really don't get that. I'm always very precise when it comes to money.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|