Business and Personal Finance Dictionary

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• BOND SWAP
  
  In a bond swap, you buy one bond and sell another at the same time. You might do a swap for several reasons, such as selling one bond at a loss at year's end to get a tax write-off while buying another to keep the same portion of your portfolio allocated to bonds. You might also sell a bond with a lower rating to buy one with a higher rating, or you might sell a bond that's close to its maturity date so you can put the money into a bond that won't mature for several years.
  
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