4 ms·
Where is the in perpetuity language in the bond terms? Doesnt it say until full repayment?
by trgn 2y ago
Where is the in perpetuity language in the bond terms? Doesnt it say until full repayment?
- d0liver 2y agoYes, but they never repaid it. They have just been paying out the interest.
- trgn 2y agoah thanks, I think I get it now. "heritable annuity" is the perpetual interest. "until repayment" threw me off. 75/1200 = 6.25% though. Where does the 2.5% interest rate quoted in the article come from?
- d0liver 2y agoNot sure. From other comments, it sounds like that's an adjustment that they made later.
- evanb 2y ago> [I also declare] to have awarded and given 75 Carolus guilders of twenty stivers apiece per year as heritable annuity, to be paid one half of the annuity aforesaid on the 9 th of June 1625 and the other half the 9th of December following and so on every six months until repayment with all payments entirely free of all taxes, impositions or burdens of whatever name or title none excepted. It is confusingly written, but what it means by repayment in the above paragraph is not "until you get your 1200 guilders back in these 75-guilder installments", its meaning is clarified by the next paragraph, > On such conditions that I or my successors [unreadable] of the aforesaid Leckendijck may, at any time when it pleases us, extinguish, repay, and buy back the said annuity in full at once and not in parts or fractions with the sum of one thousand two hundred Carolus guilders which explains how the board can get itself out of this obligation: by paying the original principal of 1200 guilders back.
- trgn 2y agoThanks, yes, very helpful!
- mgolawala 2y agoHow is the exchange rate between modern money and "carolus guilders" calculated? Something like a foreign exchange market cannot help determine this right? In theory, could the exchange rate for $1 be made equal to 1,200 carolus guilders? (Effectively, making the bonds worthless)
- lesuorac 2y agoI guess conversely, if you had a bond dominated in say Francs and the currency goes away do you just default?
- crote 2y agoCurrencies rarely "go away". They are usually replaced by new ones, and the government will buy the old currency and pay you in new currency. Imagine the mayhem if a government decided that all money everyone owned would suddenly be completely worthless!
- evanb 2y agoIn 2016 India demonetized some bank notes (true, not the whole currency) https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetis...
- crote 2y agoThere's a pretty continuous line between the carolus guilder and the euro. For example, the modern-day (2002) guilder was fixed at an exchange rate of 2.2 GLD = 1 EUR. Previous coins also had a more-or-less fixed ratio, aided by the value of the gold and/or silver they were made out of. If you want to treat it like a completely separate coin, you'd have to buy historical carolus guilders in auctions. They seem to be worth about €1500 [0], although the same amount of gold can be bought for only €240. [0]: https://www.ma-shops.nl/henzen/item.php?id=77815 https://www.ma-shops.nl/henzen/item.php?id=77815