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Bonds: Shackles for Your City
I can't stress this enough: DO NOT issue a bond. I repeat: Do not. Never. In
most SimCity games, you could get loans, which you would repay (both principal
and interest) in a certain number of annual installments, usually 10. Bonds are
not loans. With bonds, you only pay interest annually. But you pay interest
forever or until you come up with the full $10,000 to pay the original
principal! With hundreds of your dollars going every year to enrich the bank,
there's no way you'll be able to make any kind of decent profit to expand your
city or pay off the principal. When you get a bond, you instantly receive
$10,000. Your annual fee will be $100 times the interest rate. If the current
rate was 5%, you'll be spending $500 every year just paying bond interest, so
you'll be breaking even at best. You can't refinance by taking out another bond
to repay the old one, because the more bonds you have, the worse the interest
rates will be, and the more you'll have to pay every month. Also, the number of
bonds you can issue is determined by your credit score, but there's no way you
can check your credit report. If you mess with bonds, I am sure you will want
to pick up your GBA and heave it at the wall while emitting animal-like noises
and random curse words. Raise taxes, cut spending, legalize gambling - do what
it takes, but don't issue bonds, even if it's necessary for constructing a
power plant.
-VinnyVideo
