The CA Cuppertino bond is probably not subject to AMT, but I'd ask the broker to be sure. Maybe this isn't an issue for you. Right, your money is tied up for a long time. You must buy a minimum of $25000 worth of bonds. The Federal Home Loan Bank bond you must buy $50000 worth. It pays 6%, which is about market now. In the premium bonds, the reason the yield to maturity is so much different from the call is because of the premium. I don't know "Yield" vs "LY" but sometimes there is a yield to maturity and yield to call figure. No way would I tie up money for 5 years for this kind of rate. People are so spooked out of the stock market now that they have bid bonds up to these absurd levels. There's a huge disparity right now between lower credit issues and the excellent credit bonds. If you wanted to stick your toe into the lower credit issues like Charlie favors, you might do well. I'm into paying down my mortgage, and buying dividend-paying blue chips. My bonds and GNMAs keep getting called and prepaid. Hold my nose and accept 4.5% on a 25 year muni? Er, no thanks. Best wishes, Chris
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