So according to you, already determined interest rates of bonds (coupon rates) absolutely go down with time? I did not expect that level of ignorance from you.
I think he misworded his sentiments. I suspect he meant the purchasing power of the future coupon income will be diminished. The face value of the bond will definitely be greatly diminished in purchasing power at maturity.
Sijui kama watu hapa wanafanyanga biashara ama ni mdomo tu…if I had ka 5million somewhere naeza buy hizo bonds teke teke…The business environment currently is just too unfriendly everything has skyrocketed and the purchasing power of the citizenry is dwindling by day and as things become expensive the profit margins are also decreasing.
Textbook reason to NOT buy bonds. We’ve done the mathematics before on another thread so I won’t bother repeating.
Do you understand financial markets ama wewe ni wale wa act blind, act now, think later?