Help me with this silly question on actual bonds

Discussion in 'Financial Futures' started by Daal, Apr 9, 2007.

  1. Daal


    The only way to get the capital gains on real bonds(not futures) is to sell before maturity correct?
  2. (1) Only if you pay a premium over par for the bond and then sell it at a higher price. (2) You could buy a bond at a discount to par, hold it until maturity and receive your principal and capital gain without selling before maturity.
  3. Bob111


    imo not only. if you bought bond at discount(below price at maturity or 1000)
    then difference between your purchase price and price at maturity imo will be also qualified as capital gain. such difference in price also included in YTM.