The hardest part of bond trading is calculating your return if you buy and sell bonds before the redemption date, particularly when it comes to working your accrued interest. This is particularly important for investors who are into "stagging," ie. rolling capital into each new issue accruing interest along the way, leading ultimately to a decent total return on the original capital investment if the bonds are traded before redemption. Anecdotal evidence suggests some investors have made returns of up to 24 per cent in 2012 using this method.
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