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URL:  http://boards.fool.com/fungi-btw-the-rough-rough-math-on-30486125.aspx

Subject:  Re: $950K ... now what? Date:  1/15/2013  11:22 AM
Author:  rubberthinking Number:  34677 of 35365

Fungi,

BTW the rough rough math on discounting.....

if you have a bond with a five percent coupon and yields in the market place rise to ten percent......the face value of our bond is knocked down for the remaining years to maturity by five percent compounded per year.......basically the selling bond holder has to make up the difference in the market place......

I fully know that math is not the formula.....but it gives you a picture of what can happen......

also the bond market is more volatile than the equity markets over time.....

Dave
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