BONDS MAY SELL FOR MORE OR LESS THAN THEIR FACE VALUES

Discount or premium bonds can be used to create unique characteristics to meet your portfolio objectives.  When buying or selling bonds, you can take advantage of changing market conditions.  Watch for interest rate and credit rating changes to help you make gains on your bond investments.  In this tutorial, we discussed the basic characteristics of discount and premium bonds, as well as the factors that affect their pricing and their tax consequences.

Did this tutorial leave you hungry for more information on bonds?  Visit the many other tutorials on bonds and other debt securities.