Sunday, May 4, 2014

Selling Alcoa Bond

Alcoa (Photo credit: Wikipedia)
I am often asked to write about stocks that I sell.   I don't sell any stocks in the model portfolios I follow on this web/blog, and I rarely sell stocks in my own portfolio.    This post is to inform you that I am going to sell the Alcoa Bond I profiled last year.    Here is
the link to the original post. 

The price of this bond has appreciated from $96.291 to about $105.00  that is over a nine percent gain.   Remember that with bonds, as opposed to stocks, you earn income every day you own the bond.    So in addition to the gain of 9%, you will have received daily interest at an annualized rate of 5.4%.  

This bond matures in about 7 years and I would not fault you for holding on longer to see if you get even more gain   Just remember the closer you get to the maturity date, the less likely it is that you will receive a gain.   If you hold it to maturity, you will receive par which is $100.

Enhanced by Zemanta