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It doesn't compound because you aren't repurchasing more treasuries with your interest.
by p10_user 3y ago
It doesn't compound because you aren't repurchasing more treasuries with your interest.
- Kon-Peki 3y agoYou are right, but... You get a coupon payment every 6 months for 10 years and you have to do something with that money. It can have a compounding effect if you aren't just spending it on beer and Cheetos. So for most people, the interest does compound - just not directly.