notices - See details
Notices
SD
Shiv Desai, CFA (not verified)
20th June 2012 | 2:28am

Hi,

In order to profit from the cash as mentioned in the alternative I provided to investing in negative yielding bond, we need to borrow at the prevailing interest rate for the same maturity as of the bond. In this case, if we are willing to pay a bullet payment of $1000, at the end of inital 2 years then, we will be able to borrow more money then the capital gain earned on investing in mentioned bonds.