Quote:
Originally Posted by Bill14564
Absolutely! I forgot the fixed admin fee which raises the effective rate. It looks like that went down be $3 also.
Interesting: I can't seem to figure out how interest is calculated. It certainly isn't as simple as 3.05% of the previous year's balance. It isn't even as simple as 3.05% of the previous year's balance amortized monthly.
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As the bond balance is reduced the admin fee raises effective interest higher and higher and that is why we will wait a few more years. Now the extra cost is fairly small compared to balance in a few years gets larger and larger.