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I bond interest? yield?
Old 11-14-2015, 04:46 PM   #1
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I bond interest? yield?

I'm looking at the Savings Bond Wizard. An ibond issues 1/2003 shows 0% interest rate and 3.98% yield, The value of a $10,000 bond has not increased from Oct to Nov. It remained at $16572.
Why?
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Old 11-14-2015, 04:52 PM   #2
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I believe the yield is year on year effective compound interest rate, so a bond bought in 2003 may well have increased on average 3.98%/year over the last 12 years.
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Old 11-14-2015, 04:56 PM   #3
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I believe the yield is year on year effective compound interest rate, so a bond bought in 2003 may well have increased on average 3.98%/year over the last 12 years.
There's a fixed rated (not sure how much) and an inflation rate. The bonds always increase in value every month. This month it did not.
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Old 11-14-2015, 05:05 PM   #4
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There's a fixed rated (not sure how much) and an inflation rate. The bonds always increase in value every month. This month it did not.
I have just checked a $10k bond I bought in October 2003, and the stated yield is 3.56%. I just tried putting that $10k in a spreadsheet and applying 3.56%/year and it appears to be correct.

Not sure why the wizard is not increasing it month by month using the fixed rate, something not quite right there.
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Old 11-14-2015, 05:07 PM   #5
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I have just checked a $10k bond I bought in October 2003, and the stated yield is 3.56%. I just tried putting that $10k in a spreadsheet and applying 3.56%/year and it appears to be correct.

Not sure why the wizard is not increasing it month by month using the fixed rate, something not quite right there.
I agree the bond should increase in value every month.
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Old 11-14-2015, 06:02 PM   #6
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you can get a negative inflation rate and see a real 0% rate for a 6 month period It has been negative for the last 6 months.
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