<p>Yeah… Nice those bonds were not called. Those were great bonds. </p>
<p>We also bought zeros (TIGRS) for our kids (shortly after #2 was born) around 1984 @11.9-12.5%.
Face value was $30K ($120K total for each kid) to mature each of the 4 years the kids were attending college. Paid about $15-16K for each kid.</p>
<p>It would be nice if zeroes paid a little more today. They have huge interest rate risk right now.
I am not greedy.
I will take less than 12 percent a year. 
Cbreeze, those bonds were fantastic either way but they were subject to federal taxes, correct? </p>
<p>Mine were state tax free but subject to state taxes. Dstark, yours are subject to fed taxes too, correct? Were yours issued by your state? Our state just passed a ballot measure authorizing it to issue bonds for ag & damn repair/maintenance, so we shall see whether they actually do get issued.</p>
<p>No state or federal taxes. They are revenue bonds issued by a municipality in Southern Cal. Non-callable. They aren’t awesome.</p>
<p>California has had a big economic recovery. Can’t get these rates from the state anymore with this maturity.</p>
<p>“Mine were state tax free but subject to state taxes.”</p>
<p>Ok! What were these bonds really?</p>
<p>You mentioned “subject to fed taxes too”:</p>
<p>I have to go to sleep or I am going to be in big trouble tomorrow. :)</p>
<p>Sorry, mine were state tax free but subject to fed taxes, I believe (can’t remember). Sorry to be confusing. Seems like you got good bonds. Sad they no longer have them!</p>
<p>I’ve got a bad feeling I’m going to lose the .60 on that baba butterfly I bought the other day if I hold it until expiry.</p>
<p>Yes, we had to pay yearly Fed taxes.</p>
<p>Well… Too early.</p>
<p>Be happy you aren’t long slxp. :)</p>
<p>I am not long slxp. </p>
<p>The rate of return is in line with historical averages. Since 2000, we’ve been in a slow period and if one believes in the ~15 year bear bull cycle perhaps his point is credible.</p>
<p>Yeah… I am not arguing with him. He says the s&p of the market is 15. </p>
<p>I can’t find that number. </p>
<p>I bought some 12/5 dis 81 calls for 8.80 today.</p>
<p>A friend of mine that manages a couple of billion owns Disney. One of his largest holdings. His time frame is a little different. :)</p>
<p>Yesterday I bought almost $10,000 in bonds. Today I was notified that $25,000 bonds yielding 5 percent after tax were called away. </p>
<p>So now I own $15,000 less in bonds and I lost bonds yielding 5 percent.</p>
<p>That was not the plan. The good think Is I have less interest rate risk. :)</p>
<p>I don’t know very much about bonds. How do they get called away? I thought you just keep them for a fixed amount of time.</p>
<p>Sometimes that is true. Sometimes the bonds can be called away before the maturity date by the issuer. The bonds I owned matured in 2034. The first date the bonds could be called away was Nov 3, 2014. </p>
<p>It is a risk when you own callable bonds because they can be called away early. With interest rates so low, the issuer can refinance the bonds at lower rates, so they call the existing bonds.</p>
<p>If rates go up, you can get stuck with bonds that are paying lower rates than market. </p>
<p>Some preferred stocks are also callable. </p>
<p>Anyone here bought Sleeping Beauty bonds? :)</p>