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Bonds Explained Simply | Presentation and Q&A with Michael Lebowitz

Wealthion - Be Financially Resilient

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Do Callable Bonds Have Callable Provisions?

The important takeaway from this is you always want to look at if you look at all the major brokerage custodians, they have a yield to maturity and a yield to worst. You may just want to lock in 4% a year for 10 years. If you have a callable bond that may not happen. You may get called from that bond or pay back early on that bond. And when a bond is called, it's not that you're losing money on it. They're just taking away your ability to participate in this tasty opportunity going forward. Right. So make sure you kind of look at those parameters and make sure you understand what you're buying and what you want.

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