By holding individual bonds, the investor chooses when to buy or sell—thus retaining control over the timing of any taxable capital gains or , the investor does not pay any fees for professional management or recordkeeping and so is able to receive all the income produced by the bonds—before any applicable taxes. Finally, the investor may want assurance that the value of the investment will be paid in full on a certain date—so that it can be “targeted” to pay for an expected cost, such as a college tuition bill. Because a bond’s interest rate is known, an investor can predict the value of the investment at maturity. Consider.
