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When you ultimately do liquidate a bond, the loan you receiveactually represents Real Estate two things: a return of your capital expense (cost basis), plus accrued interest. Sometimes, if you sell a bond instead of redeem it, you mayget a premium over the face value. In that case, the premium represents a gratitude in the worth of your capital expense; i.e., a capital gain. However there are the ones that are nice, clever and truthful and have your finest interest at heart.

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