To: Toddsterpatriot
If 4.4% isn't a high enough rate, the rate would be higher.Or the value of the dollar would be lower (and it just might be).
For a foreign investor, there's a huge difference between a 4.4% rate of return at a 1 Euro / $1 exchange rate and a 4.4% rate of return at a 1 Euro / $1.50 exchange rate. The latter scenario has a 33% discount built into it.
368 posted on
11/02/2007 12:12:19 PM PDT by
Alberta's Child
(I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
To: Alberta's Child
For a foreign investor, there's a huge difference between a 4.4% rate of return at a 1 Euro / $1 exchange rate and a 4.4% rate of return at a 1 Euro / $1.50 exchange rate.In both cases, the coupon is 4.4%. If that coupon is not high enough to satisfy an investor, he won't buy.
375 posted on
11/02/2007 12:21:04 PM PDT by
Toddsterpatriot
(What came first, the bad math or the goldbuggery?)
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