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Real Rate of Return

The Real Rate of Return for a bond consists of two pieces: the interest you've earned on the bond and the actual market value of the bond (it could be above or below face value when you sell it). If the market value of the bond has appreciated, you may have to pay capital gains on the rise in value. The interest you earn is taxed like income.
(more Real Rate of Return information below useful links)

See Also

Bond
Capital Gain
Interest

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