Quote:
Originally Posted by Robojo
That would be a deal breaker for me too. Why should I pay that? The bond makes no sense to me.
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What part of the bond financing the infrastructure makes no sense?
The effective cost of a bond is the difference between the bond interest and what you could earn investing that money.
For example, you have a $50K bond @ 4.5%. Instead of paying it off, take your bond money and purchase a 4.5% CD, the bond is now effectively costing 0%.