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Subject:  Re: Bond investing question Date:  12/7/2018  2:50 PM
Author:  pauleckler Number:  36524 of 36612

The premium you pay produces the capital loss component, and is factored into the YTM calculation.

Conversely if you are able to buy the bond at a discount from par (as when interest rates rise or news causes investors to doubt the safety of their investment) then when the bond matures you will have a capital gain.
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