If you owned interest bearing bonds, and periodically converted a portion of them to cash for transactions purposes, what factors would influence your decision as to how often you converted the bonds to cash?

The frequency of converting interest-bearing bonds into cash would be influenced by various factors. This includes your financial liquidity needs, where higher liquidity needs could push you to convert bonds into cash more often. Market conditions would also play a role, with conditions that propose higher returns than the bond's interest compelling a conversion to cash. Personal cash flow needs are a determinative factor, where a shortfall of expected income might necessitate more frequent conversions. Opportunity costs of potential higher returns and transaction costs of the conversion also need to be evaluated. Lastly, inflation, which reduces purchasing power and tax implications on cashing out bonds, can also influence your decision. Thus, these factors in tandem influence the frequency of converting interest-bearing bonds into cash.