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Author: AngelMay Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: California Bonds Date: 5/23/2009 1:13 PM
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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.

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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.

AM
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