Is there a catch to invest to treasuries close to maturity date? I don't want to lock the money for a long time, b/c the interest rate probably will go up. But I am concern that it's not that simple. Anything to look for?
Thank you so much for your responses. Here is more info that you've asked: I am looking for "catches" where I lose money instead of making them. Such as higher execution price or other hidden costs or price adjustments. (My brokers don't charge commissions for bonds) How far till maturity date I am looking to buy? - probably 1 year max. I am looking to buy US Gov Bonds/Notes/Bills close to the maturity date and hold it till maturity. Here is an example: if I buy this Note: 912828WW6 matures on 7/31/19, YTM - 2.34%, cost $99.81, coupon 1.62% Assumptions (please tell me if I am wrong): I am going to collect 2.34% annually (WTM can be slightly worse) till it matures and then collect $100 at maturity date. % that I am going to collect will be probably pro-rated - I'll have to share it with the seller to make up the time because I'll buy it somewhere between "dividends" dates. Please let me know your thoughts. Thank you all! 🙂