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Path: utzoo!linus!philabs!prls!amdimage!amdcad!cae780!gordon
From: gordon@cae780.UUCP (Brian Gordon)
Newsgroups: net.invest
Subject: Re: A penny saved...
Message-ID: <1442@cae780.UUCP>
Date: Wed, 9-Oct-85 14:02:02 EDT
Article-I.D.: cae780.1442
Posted: Wed Oct  9 14:02:02 1985
Date-Received: Sat, 12-Oct-85 05:12:10 EDT
References: <161@aplvax.UUCP> <763@charm.UUCP>
Reply-To: gordon@cae780.UUCP (Brian Gordon)
Organization: Tektronix, Inc. (CAE Systems Division), Sunnyvale, CA
Lines: 29

In article <763@charm.UUCP> grl@charm.UUCP (George Lake) writes:
>Rather than pay extra to a loan, buy bonds.  They pay the
>same interest rate as the loan you have, yet you get
>to deduct interest and take the capital gain!!!

I must have missed something, here.  If I earn interest from owning a
bond, what do I "deduct"?  That's income.  If I sell the bond at a gain
or loss, rather that hold it to maturity, I have a capital gain or loss.
Unless I am perfect at predicting the bond market, how do I guarantee 
that it is a gain, not a loss?  If I buy a bond at less that its face
value -- presumably because someone else is taking a capital loss on
selling it to me -- I do get a higher effective interest rate, which is
still income, and, I believe, capital gains treatment rather than income
treatment for the difference between "selling" and buying prices, but have
had to pay commissions, etc., too.

Did I miss something else?

FROM:   Brian G. Gordon, CAE Systems Division of Tektronix, Inc.
UUCP:   tektronix!teklds!cae780!gordon
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