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I'm curious about Corporate Bonds and Prefered Stocks.
1- Are they both callable; or is one and not the other?

Bonds almost always yes, Preferred stocks; almost always No. When looking at any one issue your broker can tell you if there are any call or put provisions on that issue.

2- If they're called- is the holder basically out-of-luck on getting a return?

Sometimes, if callable it will be callable at par; usually $1000 on a bond and $25 on a preferred stock. Sometimes there is a fixed or declining scale call premium to be paid by the issuewr to you for the privilege of calling the issue. Again, your broker will know the details.

3- Does the yield have anything to do with the duration to maturity?

Actually you are probably interested in both yield to call and yield to maturity. The yield to call is in the bank; the yield to maturuity may or may not be achieved depending on the call provisions on the security.

4- If one does NOT need the current income- BUT wants more overall portfolio stability- which(or both) should be bought, and whether or not it should be kept in an IRA account to minimize tax consequences

Only you can figure out if bonds or preferred stocks belong in oyur portfolio.


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