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Author: AngelMay Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35345  
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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