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Response to jmowreader (Reply #31)

Sat Dec 14, 2013, 03:30 PM

34. $20 mil in Ten Year Treasuries will get you $550,000/year

2.75% coupon currently. Each million face value then would generate $27,500 per year in interest payments.
X 10 X 2 = $550,000 a year and you still have the twenty mil of principal. You could do that out of a single account at a brokerage. No need to set up ten different accounts.

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

And FWIW, that quote page shows them selling at a discount to Par, so you could get $20 mil worth for around $19.8 mil.

Do the same thing only with Muni bonds and the interest is tax free.

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LineLineNew Reply $20 mil in Ten Year Treasuries will get you $550,000/year
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