Re:Yale’s 367-year-old water bond still pays interest (2015)
by nly on Wednesday March 24, 2021 @02:38PM
(#26571272)
Really the problem is the lack of reinvestment of dividends.
If they'd reinvested their 2.5% every year, in a similar bond paying 2.5%, then they'd now be collecting dividends of something like $600,000/year... absolutely crushing holding Gold.
The fact that this is a perpetual bond is interesting, but rolling an investment through shorter-dated bonds paying 2.5% over the centuries would have achieved a better result.
If they'd reinvested their 2.5% every year, in a similar bond paying 2.5%, then they'd now be collecting dividends of something like $600,000/year... absolutely crushing holding Gold.
The fact that this is a perpetual bond is interesting, but rolling an investment through shorter-dated bonds paying 2.5% over the centuries would have achieved a better result.