ANSWERS: 2
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they are just like an investment only secured in there own way, if they are purchased in 1980 for $1.00 you have the valueing of the dollar for today and the economic increase as well- i think i got it right? like when they say it cost a million to build a bridge in 1950 but it would cost four million to build it exactly the same today.
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If you bought a bond when you 1 yrs old you need to find out how much interest was being paid per a bond. But if you bought a $50 bond and inflation has increased faster then the rate of interest you where receving then the $50 bond is not worth as much. eg if you where getting 4% interest p/a then over the 20 years it would now be worth $109.56. Even if it was 8% it would only be worth $231.76 However if it was and Australia bond which i think had 17% interest at that time it would be worth $1155.28. sorry but a $50 bond doesnt really equal if it is from 20 years ago
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