Originally Posted by
bombermwc
I understand what you're saying, but i dont think the logic holds.
Bonds typically are not super long. It's an easy check. What's the current rate of inflation? Is that amount larger than what the STATE would pay for a loan rate? I've yet to see those run in such a way that the term of the bond would cause the lobor inflation to rise faster than the interest amount. And that labor increase also increases the loan cost, thus the amount of interest paid.
We have to wait a little longer, but no i dont think that it is costing us money by waiting. Now if we have a 20 year bond for something...yeah, it would cheaper to do a loan (IF the loan market is favorable). You have to balance the term length of the bond to see what the rates are between the formula. It all ties to that bond term.
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