Not necessarily.
Municipal bonds are tax free for one
Secondly, we just randomly picked a 10% return. We could increase
the return to 12% for example.
Third the paramaters around a bond can have infinite scenario's.
example, the investor and town could split the revenues over a
certain threshold.
There are many possibilities
--- In AsburyPark@yahoogroups.com, "justifiedright"
<[EMAIL PROTECTED]> wrote:
>
> I believe that shows that under the example we have been dealing
> with today, the amount calculated for present value and rate of
> return is off by a great deal if we are going to attract an
investor
> for a ten year period.
>
> As the below number shows, he can throw it all in a nice safe CD
and
> make more.
>
>
>
> --- In AsburyPark@yahoogroups.com, "dsher4" <dsher4@> wrote:
> >
> > $13,519,825 and 40 cents
> >
> >
> > --- In AsburyPark@yahoogroups.com, "justifiedright"
> > <justifiedright@> wrote:
> > >
> > > So if I put 8.3 million in a safe investment vehicle with 5%
> > > compounded annually, how much would I have at the end of 10
> years?
> > >
> > >
> > >
> > >
> > > --- In AsburyPark@yahoogroups.com, "dfsavgny" <dfsavgny@>
wrote:
> > > >
> > > > --- In AsburyPark@yahoogroups.com, "justifiedright"
> > > > <justifiedright@> wrote:
> > > > >
> > > > > The investor would want a discount for present value.
> > > > >
> > > > > They aren't going to give you 50 cents now for 50 cents
they
> > are
> > > > > going to get from a meter 10 years from now, so you can
> invest
> > > it
> > > > > and double the money.
> > > > >
> > > > > They may as well invest it and double their money.
> > > > >
> > > >
> > > > Stick to the law. A yield or cap rate converts future
dollars
> to
> > > > present value.
> > > >
> > >
> >
>
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