Non-financial boards have been closed but will continue to be accessible in read-only form. If you're disappointed, we understand. Thank you for being an active participant in this community. We have more community features in development that we look forward to sharing soon.
Here's another example comparing apples and oranges...which is what I think you are doing: I invest $100,000 in a bond fund and interest rates rise because inflation rises. At the end of 5 years, my fund is worth only $90,000. You, on the other hand, invest $100,000 in a 5 year bond. At the end of 5 years, you get your $100,000 back while I only got back $90,000. The difference is that my fund kept reinvesting matured/called bonds along the way at higher interest rates. So my higher interest received plus my $90,000 at the end should (assuming all other aspects are equal) be the same as your lower interest plus your $100,000. But you THINK you are ahead of the game because you got your $100,000 back as a lump sum while I got some of mine back in the form of higher interest.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |