Loading ...because your short term bond will become a long term bond ..That means the CURRENT value of a payment made further in the future is much lower …I said CURRENT VALUE ! …If you hold it until it matures you get paid IN FULL ..If you want out NOW you take a HAIRCUT ! So TRUMP can claim everybody will get PAID IN FULL and he will be correct….
In the 1970,s I bought treasury bonds (ZERO COUPON)yielding 21 % under jimmy Carter …I paid $150 for a thousand dollar bond held to maturity (30 years)when rates fell under VOLCKER The Bonds skyrocket to 1300 per BOND ..I made 9 times my money in 6 months Thanks VOLCKER..
A BOND is a certificate of GUARANTEED confiscation ..definition by Franz PICK (swiss Banker)