To: Toddsterpatriot; SAJ
Treasury bills are sold at a discount. Call your broker and ask for an offer on a 1 year treasury bill. He'll quote (for argument's sake) 5%. Thus a 10,000 dollar 1 year treasury bill will cost you 9,500 dollars. What is the yield on a 1 year investment of 9,500 dollars that earns you 500 dollars?
The same concept applies to inclusive vs. exclusive tax rates.
306 posted on
12/24/2007 2:39:24 PM PST by
groanup
(When companies fail they go out of business. When a gov't project fails it gets bigger. M.F.)
To: groanup
What is the yield on a 1 year investment of 9,500 dollars that earns you 500 dollars?23%. And I get a prebate.
311 posted on
12/24/2007 2:46:33 PM PST by
Toddsterpatriot
(What came first, the bad math or the goldbuggery?)
To: groanup
Those sneaky, deceptive brokers are just selling snake oil. Their 5% bond is really a 5.26% bond!
This is one for the ages... on par with 100-22=88...
Merry Christmas indeed!
323 posted on
12/24/2007 3:12:59 PM PST by
Principled
(Vaporize the "Divide and Conquer" taxes - Have everyone pay the same marginal rate!. NRST!)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson