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I have been attempting to determine the rate of this 1 I bond I am holding.

Here are the results and the rate answer depends upon what method you use to determine the bond rate -


HERE IS THE I BOND EXAMPLE -

THE WEB SITE ON-LINE CALCULATOR GIVES INTEREST RATE OF 2.61%

THE BOND WIZARD GIVES RATE OF 2.61% AND YIELD OF 4.32%

USING THE EQUATION FROM THE GOV WEB SITE GIVES 4.72%

USING THE TABLE FROM THE BOND WEB SITE - RATE OF 4.72%

For reference:

http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm

http://www.savingsbonds.gov/BC/SBCPrice

The bond was issued in 01/2003 in $1000 denomination.

I am sure the answer is something easy that I am just not seeing. Can someone explain this ?

p.s. -My wizard version is 4.13 ( so it is up to date)


I was just "fooling" around with bond wizard and when I put in price for dates of 11/2006 and 12/2006 I get 2.61% rate, BUT when I put in 01/2007, I get 4.72% ?

So now it matches the other values calculated -

Why ? Anyone understand that ?

Thanks.
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