3 ms·
Would a 100 year bond be a good match for an annuity? (I guess that's what you're making reference to). 30 year bonds match the expected life expectancy of some
by benj111 7y ago
Would a 100 year bond be a good match for an annuity? (I guess that's what you're making reference to). 30 year bonds match the expected life expectancy of someone buying an annuity, 100 year bonds not so much.
- chewz 7y agoLonger time to maturity implicates larger interest rate risk. But with rates near zero there seems to be only one way to go. In higher interest rate environment Treasury might repurchase bonds with discount. So this is free money. On the other hand if US goes Japanese for next decade or two it might be last chance for holding gov bonds without paying for the privilege ;-)