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4 votes

financing kids college with bonds

This may not be an answer, but it's more than a comment: Have you looked at the related questions? What is the best approach to save money for College for three kids? College funds - is it too late ...
  • 34.5k
10 votes
Accepted

financing kids college with bonds

Could I buy 10 year treasuries? Sure Would that be a good choice? Well it would be safe (meaning you would definitely get exactly the yield you bought into) but college costs have risen much more ...
  • 121k
3 votes

TreasuryDirect.Gov Tax Withholding

It took a few clicks to find it. Go to the "manage direct" tab On the left hand side of the page will be an "Update my personal information" link. After you click this link you ...
1 vote
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Treasury Yields -- Quoted on an Investment Basis vs. Discount Basis

The convention for US treasury bills is discount yield. Constant maturity series (CMS) are not actual treasury yields but a computed construct that has always a set maturity (1 year for example). ...
  • 564
0 votes

Calculating composite rate from fixed rate and inflation rate for I-bonds

@mbhunter provided the correct answer. Yet, it seems there is still confusion about how this formula is used, or where it comes from. It is not just how it is defined. Although fixed income can be ...
  • 564
2 votes
Accepted

Calculation for current value of Ibond in TreasuryDirect

You can look here for the data used in the calc. The actual calculation is straightforward. According to the screenshot, your 01-2022 bond has 3 periods with the following compound rates: 7.12%, 9.62%...
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3 votes
Accepted

Invest in treasury bonds or pay off loan?

You are probably better off paying down the loan. That guarantees you a 6.69% return immediately since that's the effective interest savings you'll get. With an I-bond, your funds will be tied up for ...
  • 121k
5 votes
Accepted

Why is there a discrepancy between current inflation rate and I bond rate in the US?

The "inflation rate" for the i-bond is based on the past 6 months of CPI values, not a whole year.
  • 121k
4 votes

Why is there a discrepancy between current inflation rate and I bond rate in the US?

It takes time to compute inflation. That's why the reset inflation rate in May and November does not use the values for May and November inflation (it is not yet available when the rate is announced). ...
  • 564
4 votes
Accepted

T-bills yield is the lower bound for the return?

You are guaranteed 4% if you hold the bill to maturity. If rates go down and your bill is more valuable, then yes you can sell it for more than what you paid for it, but then what do you do with the ...
  • 121k
1 vote
Accepted

Why did SHY ETF only drop 5% YTD but IEF dropped 15% when yield curve is inverted

It would really help if you clarified your question. As asked, it's difficult to answer without knowing what time frame you're referring to. First off, SHY holds Treasuries with maturities between one ...
  • 6,542
1 vote

safe investment for maintaining purchasing power

Nobody knows what the inflation rate will be in the next year. There are estimates, but there are no guarantees. Even people who think they have a good model can't predict the political events, or ...
4 votes

safe investment for maintaining purchasing power

The only secure investment which guarantees a yield at the inflation rate are I Bonds. Unfortunately, they have a minimum hold time of 12 months (not what you say you want), and maximum purchase ...
  • 49.3k
0 votes

safe investment for maintaining purchasing power

A Treasury Direct account can tie your bank account into an investment in three-month Treasury Bills. Or ticker BIL is available in a stock brokerage account but that ETF could produce small capital ...
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