Called Bond

Called Bond

This is disappointing, but not entirely surprising. I bought some Fannie Mae bonds several years ago that had 6.75% annual yield--and they weren't scheduled to mature until 2037. They were callable bonds (meaning that Fannie Mae had the option of buying back the bonds at the full face value before maturity), which is why they paid such a high interest rate. And today I received notice from Schwab that Fannie Mae is indeed doing exactly that.

I actually paid slightly less than face value for the bonds, so I did very nicely with these bonds--6.75% interest on a very safe bond for several years, and now I get my original money back--but now I have to find somewhere to invest that money that gets a decent return.