Bond Masts - What You Need to Know

Bond masts are very simple. You pay an upfront cost, you get a return on a bond, and at the end of that period, you get your money back. The key thing for the bond market is lation. Think of inflation as the apex creditor of bonds. If you have five % inflation for ten years, that's going to eat away something like 25 %, 28 % of your principl in terms of its real value. But here's the thing, you're still getting your hundred dollars back with equity. And so what's really important about bonds though is that they set the base level. Us Treasuries are a great example of the base rate, that