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Subject:  Re: Bonds? Date:  1/30/2007  2:47 PM
Author:  dougdoogle Number:  55483 of 90110

Consider individual bonds. Buy them from a broker in multiples of about $1000. Hold them until they mature. That way the interest rate is set as of the date of purchase.

Disadvantages include:

Value decreases as interest rates rise. However, that doesn't matter if you hold to maturity.

If the company goes bankrupt, you may lose it all. However, if the company comes close but doesn't go bankrupt, you get all your money at maturity. Compare that to owning the company's stock in a near bankruptcy.


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