BUS 1301 Gazette - Bonds Coming Due

BUS 1301 Gazette - Bonds Coming Due - Millions in Bonds...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Millions in Bonds Coming Due in 2014/15 by Blaine McCormick (Reporting on Rounds 4 and 5) Many people have bought into the rumor that bonds are “free money” since a team can take them out and never have to pay them back. After all, the simulation runs for only eight rounds and the bonds are payable at ten years. Round 4 brings this thinking back down to earth as a $1,733,333 bond comes due at the end of this round. This means that – unless a team has already retired the bond early– each team will pay not only the final 12% interest payment on this bond in Round 4 but also the entire face value of the bond itself in Round 5. Benjamin Franklin once said that, “The creditors are a superstitious sect, great observers of set days and times.” Nowhere is this more true than when bonds come due. Let’s answer a basic question, “Where did this bond come from?” Well, all teams inherited this bond from the previous management team who took it out in 2004. Teams also inherited a smaller bond paid off in 2012/13 (Rounds 2/3) and another
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/29/2010 for the course BUS 1301 taught by Professor Mccormick during the Spring '08 term at Baylor.

Page1 / 2

BUS 1301 Gazette - Bonds Coming Due - Millions in Bonds...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online