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[quote=Anonymous]The other bond post has prompted me to toss a question out for the financial mavens who frequent this board:

I happen to have a $5,000 New York taxable "Build America Bond" issued in 2010 in an IRA, coupon rate 5.646% (feds were subsidizing state/local bonds, so interest rates were favorable).  It matures in 2027.  Face value is $5000.

Of course, I wish I'd invested much more than $5000 in this -- it was kind of on a lark purchase -- I happened to read at the time that BABs might be good investments, then jumped on this one when it was issued.  Turns out BABs really were good investments!  My $5k bond now has a $6200 value, and has accumulated about $700 of interest.

This has really been a learning experience for me.  Given the small amount, I'm not so much concerned about the money as learning the right approach so I know for the future.

Since the price has gone up significantly, should I consider selling the bond and putting the money into an equity fund?  Or should I just keep it until 2027, and reap the interest?  Any financial types that can tell me the correct answer?  I'd really like to know b/c I don't feel I understand bonds very well -- I have only this actual bond holding; all other bond holdings are in bond index funds.

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