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To: Alberta's Child
If your bank offered you a five-year certificate of deposit that paid an annual rate of 4% on a $10,000 investment, would you buy it?

No.

But if they told me that I only had to deposit $6,500 to get that $400 return

That's a 6.15% return.

(and they'd give me credit for the $3,500 difference)

No such thing. You're over thinking the situation.

This is basically how these foreign trades are being conducted today.

Sorry, a 4% coupon is a 4% coupon. If foreign holders sell, because they think it's too low, the return will increase. It hasn't because they aren't selling, yet.

388 posted on 11/02/2007 12:35:12 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: Toddsterpatriot
OK, then let's look at this differently . . .

Why do YOU think the U.S. dollar has declined against every other major currency in the last few years?

394 posted on 11/02/2007 1:00:56 PM PDT by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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