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Author: pauleckler 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 35367  
Subject: Re: CD Ladders vs Bonds vs Bond Funds Date: 4/24/2003 1:51 PM
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"Bond Ladder (or Tradable CD Ladder): . . . unless you plan on spending the money or investing in another asset class, there is no benefit to realizing the cap gain."

I agree, Nick. It makes no sense to sell a bond unless you have identified an attractive alternative investment. A reasonable way to do this is to keep track of your yield based on cost and your yield based on market value.

The market value number tells you when you can sell that bond at a profit and make better returns in other investments--even though you bought it well and are getting a nice yield based on cost.

Still, most individuals do poorly selling bonds prior to maturity. Its better to keep them unless something threatens their security.
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