Sorry to bore the board with a seemingly dumb question, but here goes:

Do the rates for EE bonds adjust twice a year? IOW, is the interest rate variable?

I understand that I bonds have a base rate and an inflation "fudge factor". Hence, the rate that they earn fluctuates.

Does the same thing happen for EE's, only that the "whole rate" fluctuates, instead of a fixed and variable component, like I bonds.

FWIW, the http://www.savingsbonds.gov/sav/savmktrt.htm site says that EE bonds bought in Nov 01 paid 4.07%. Furthermore, the current rate is 3.96%. Does an EE bond purchased in Nov 01 now only earn 3.96%?

If rates go up in Nov of '02, will the old EE bond then earn whatever rate is determined at that time? (For a total of 3 different rates, the Nov 01 rate, May 02 rate, and then the Nov 02 rate.)

I could not gather this from reading the savings bonds website. Please advise and thanks in advance.

ricerFool