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On “”Hidden Gems in the Muni Market””contd #3

Q

You say in your article that a bond bought at a premium, called at par before maturity, will yield more to call than its yield to maturity. Is that possible?

A.R., Arizona

A

James A. Klotz responds:

Actually, we said, "If the bond is called, you receive a higher return than if you had (at the time of purchase) bought a bond maturing in that year." We apologize for our lack of clarity.

Nov 27, 2006

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