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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: What to do with My Savings...||Date: 7/10/2010 11:09 PM|
|Author: pauleckler||Number: 31069 of 35498|
The interest paid by muni bonds is determined by the bond rating and the maturity. Short maturity bonds pay the lowest interest rates; long maturity bonds pay higher interest. The yield curve of US Treasuries is the standard measure of maturity effects on yields. To see what the current one looks like, punch "yield curve" into Google at any time. The data are updated daily.
Here is a general website-- http://www.treasury.gov/offices/domestic-finance/debt-manage...
The data are for govt bonds, taxable, but very safe and usually free of state and local income taxes. All other bonds are usually priced as a differential from yield curve.
Lower rated bonds pay higher interest. Most should buy investent grade bonds rated AAA to BBB. Lower rated bonds are considered junk bonds, and those below BB can be quite risky.
As to what you can earn, check out a few mutual funds and see. I like closed end funds tickers NQS and BLE currently paying close to 6%.
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