Episode 298: How do Treasury Bills Work?
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Government Bonds Are Transferable, So You May Not Get Your Money Back
The bond doesn't expire for 30 years, but these bonds are what we call transferable. And so you get your money back, not from the government, but from this person that bought it from you. For somebody to buy it, they will have to expect that they'll make a profit,. Which determines the price, which means you may not get your principal back. Interest rates in Europe, some of them went negative. That is strange.
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