Then Enron, Quest, and WorldCom hit the fan. I imagine their bonds went from AAA to junk overnight. Thus, I'm sticking with CDs for that fixed rate of return.Nope, they certainly weren't AAA. I know the point you are trying to make though (although an intelligent investor would have noticed that these companies weren't generating cash flow commensurate with their supposed earnings).In any case, Treasury bonds are guaranteed by the government. Most CD's only go out to 5 years, but Treasury bonds go out to 10 years and provide a higher rate of return.You *do* have alternatives. You are of course free to ignore them.
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