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by AnthonyMouse
19 days ago
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"No risk" is not a thing. For example, someone could borrow $250,000 from the bank and then get hit by a bus the day after graduation. Moreover, interest isn't just about risk, it's the time value of money. If you put money in a CD at a major bank which is FDIC insured, the risk of you losing that money is as close to zero as anything reasonably gets, but you still get paid interest. The risk premium is on top of that. And the higher the risk, the more interest people have to pay. |
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