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We paid off our bond early, but it still shows a small balance this year. Why? |
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Your bonds are traded on a secondary market, where they have a value that differs from the "Face" value. The market value displays in the "Close" column in the "Outstanding Bonds" area.
When you pay off a bond early, it is retired at the market value, not the "Face" value. The market price changes with current interest rates. In this case the market value of the bond exceeded the "Face" value.
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