Quote:
Originally Posted by rustyp
Is the bond like a mortgage ? Interest is paid on the unpaid balance ? Thus in the beginning little comes off the principal. Did you look at your 30 year analysis from this aspect ?
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Just did a quick calculation - if the bond is paid on the unpaid balance
- a $20000 bond at 6% for 30 years is $120/month
- at the end of 10 years you have paid $11160 in interest
- a $20000 investment at the end on 10 years at 6% yields $15816 interest (a net gain of $4657).