And it's really simple: It's the way bonds are built.
A $10,000 Treasury bond is guaranteed to be worth $10,000 when it comes due. So if you can buy it at a discount — for, say, $9,000 — that’s like earning another $1,000 in interest.
The cheaper the bond the more you can make and the higher the effective interest rate.
posted by Karl Ortenburg @ 9:48 PM
3 Comments:
Interesting website with a lot of resources and detailed explanations.
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Your are Nice. And so is your site! Maybe you need some more pictures. Will return in the near future.
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Nice idea with this site its better than most of the rubbish I come across.
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