[DoodleDawg]

Why would we not be buying back the nominal amount with dollars that are now worth less?

Because the price we pay to purchase the debt back would increase to reflect the less valuable dollar.

[OHelix]

“Because the price we pay to purchase the debt back would increase to reflect the less valuable dollar.”

That’s what I don’t understand.

When a bind matures, do we pay to the holder something different than it’s nominal value in dollars no matter what those dollars are worth at the time? And is that not how we would “buy back” our debt, by paying the nominal value of the matured bond in dollars?