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One you could answer and then... a follow-up!


Good going, Ken. <smirk>


Yep, in that case, an EE Bond would probably beat a TIPS bond. As you point out, EEs are currently guaranteed to yield a minimum of around 2.8% over a 20-year period. If the deflation lasted the entire period, EEs would double in nominal value, whereas TIPS would likely be unchanged. (You'd have collected 20 years of declining nominal interest, which would end up being far less than 2% annualized using par value and today's rates.)

Ken (who owns EEs, Is, and TIPS and would love to buy more of any of them at decent rates!)
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