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There should be a smiley on that. It'll confuse some people
If you pay 240 for a bond and get 30 over ten years in interest and 100 redemption that implies a negative yield over time. You never get your money back.
If Germany defaults then the negative yield just gets more negative. You get even less money back.
1 comment:
There should be a smiley on that. It'll confuse some people
If you pay 240 for a bond and get 30 over ten years in interest and 100 redemption that implies a negative yield over time. You never get your money back.
If Germany defaults then the negative yield just gets more negative. You get even less money back.
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