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Subject:  Re: California Bonds Date:  5/23/2009  12:36 PM
Author:  jackcrow Number:  27608 of 36887


But....even if it gets called, you get your initial investment back, right? Can you lose anything except the future dividends when it is called?

Correct, called is the same as paying off your car early; dividends come to an end an you get face value. If you bought at a premium you will lose the difference between paid price and face value, this would be true if the bond ran all the way to maturity. Early call can bite your returns especially if you paid a premium planning your yield based on maturity. On callables we check Yield to worst.

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