Okay I’m new to investing so this might be a stupid question.
Why would anyone buy a long term (let’s say 25 year) bond that only pays 5%?
Sure, you get 50 a year for 25 years but even in 10-15 years that 50 bucks is gonna be so eroded by inflation that it would be worth like 30 bucks in todays dollars??? And the principal that you get paid at the end of 25 years would be worth like 650 in todays dollars? I’m confused?
Submitted August 15, 2024 at 10:57PM by Kind-Bid-9636 https://ift.tt/ySVFQfe