I think you done good! That's what I like about step-ups. The initial yield is higher than you would get on a short-term bond. You must recognize that you don't have much call protection. As long as you don't pay a premium, that shouldn't matter. If there was a discount, and you get called early, you have some capital gain in addition to the interest. You can't be sure they won't call as soon as allowed. You can be reasonably sure you'll never see that 9%. Anywhere in between should be acceptable. I agree--the bond portion of my portfolio is diminishing due to the low interest rates available without a degree of credit risk I find unacceptable. Best wishes, Chris
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