3 ms·
If you need to pay someone now, the fact that in X years you have the money creates costs - whether the bonds pay 100% or not at maturity doesn't really matter,
by RandomLensman 4y ago
If you need to pay someone now, the fact that in X years you have the money creates costs - whether the bonds pay 100% or not at maturity doesn't really matter, only the current MtM matters for money now as opposed to money in the future.