The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Question On I Bonds||Date: 6/5/2003 4:20 PM|
|Author: goodald||Number: 7395 of 35930|
I tried looking over the treasury direct site but was a little confused about how an I bond's rate will change over time.
I bonds have a fixed rate and a variable inflation-adjusted rate that is added on.
If I bought a bond today, at a fixed rate of 1.10, then bought another 6 months from now, at 1.50% (example): Would the second bond I purchase always have a higher yield?
I'm presuming the first bond would always have a lower fixed rate portion to add to the variable part? Or will the fixed rate change as well?
I was going to buy 5K of I bonds but am thinking it may be worth either waiting till rates improve, or purchase at a slower pace to "average in"...
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|