Buying Bonds At A Discount Info

By buying at $650, Arthur had unlocked a double-sided gold mine:

Bonds have a legal obligation to pay back the full $1,000 at the end of their term. Arthur was essentially buying a future $1,000 for a $350 discount. buying bonds at a discount

The town gossips at the diner laughed. "Arthur’s buying debt in a sinking ship," they chuckled. But Arthur had read the fine print. He knew the utility’s assets were solid and that the "sinking ship" was just undergoing a very expensive repair. By buying at $650, Arthur had unlocked a