If you sell early what do you lose?
If you sell early what do you lose?
It depends. If interest rates have gone up since you purchased, you will probably get less than you paid, so you will lose some of your principal. If they’ve gone down, you should get more than you paid, so you will have a capital gain. In either case, you will only get interest for the time you held it, rather than all 6 months of interest, so you will lose the interest you would have gotten if you held for the full term.
AJ
When you sell a corporate bond, the buyer is billed for the interest on your bond for the time you held it. You receive your interest payment from the buyer. The buyer then collects the full interest payment whenever it is paid.
Preferred stocks are often traded flat. So whoever is the owner of record on the x date receives the whole payment. Market price of shares tends to factor in the dividend payment more or less.
Which way works for treasuries?