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Author: fredericch Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Buying at a Premium to Par? Date: 3/1/2011 10:38 PM
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Another advantage of buying a higher interest bond at a premium is that it is less volatile. The same .2% drop in rates represents a bigger drop relative to a 4% coupon, compared to the same .2% drop on an 8% coupon. So the bond price in the secondary market stays more stable.

That is if you are interested in selling on the secondary market.

Fredericch
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