QUOTE: Originally posted by MP173 PL: You posted earlier about reducing the interest payments by replacing 8% bonds with 5% bonds. That can be done if the bonds are "callable". "The ability to call bonds protects issuers by enabling them to retire bonds with high coupons and refinance at lower interest rates. Calls are bad news for bondholders. A high interest rate, thought to be locked in, disappears and the bondholder is forced to reinvest at lower rates." (The Bond Book, Annette Thau, page 17). If I want to take a nap, I grab Ms. Thau's discussion of bonds and read awhile. Within 10 pages I am dozing. Nothing against her, nor her book, but bonds really put me to sleep. Her book is the "bond book" although Larry Sweedroe has a March release on what he has indicated will be the "bond bible". Cant wait! ed
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