POSTED BY September 22, 2013 10:01 am ONE COMMENTON
I bought the IIFCL tax free bonds last year at the coupon rate of 7.08%. I couldn\’t find anything on this in the site, and have some quick questions on this:
1. When I go to my trading account, I see the bond value is actually reduced (surprised why!?) by about 10% and I am actually in loss. Is that possible for a \”tax free bond\” instrument?
2. Is this is the current traded price of these bonds in exchange, in case I want to exit? Are there exit penalties if we exit via exchange?
3. Need some inputs to enable someone like me to think further if we should exit from these bonds and sell in exchange?, or should keep for the long term proceeds?
4. In general, do the payouts on the Tax Free Bonds have the \”growth option\” available, so the money could be compounded during the proceeds/settlement time after 20 years?
As always, thanks for your inputs and pleasure to be here in this forum.[A]