Comment by cma
2 months ago
A checking account that pays around inflation in interest doesn't net out to that unless you don't pay any tax on the interest.
2 months ago
A checking account that pays around inflation in interest doesn't net out to that unless you don't pay any tax on the interest.
Try that same argument with a zero coupon bond. It works fine because you don't have any coupon payments, thus no income tax until the principal is repaid at maturity.