I bond interest? yield?

[Refresher]

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?

[Alan]

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.

[Refresher]

Quote:

Originally Posted by Alan 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.

[Alan]

Quote:

Originally Posted by Refresher 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.

[Refresher]

Quote:

Originally Posted by Alan 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.

[bingybear]

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.