FIRECalc ? - 5 yr treas vs commercial
Sorry if this has been discussed, but the income the calculator tells me I can acheive with a 95% success rate is quite a bit less using the assumption of commercial paper for my fixed income holdings compared to using 5 year treasuries? I would think that commercial paper pays more interest than treasuries, so the opposite would be the case. I can only suppose that this has something to do with the yeild curve and the duration of the commercial paper, but can't quite figure the details.
How would this change if a person were using something like an intermediate or total bond fund?
Enlightenment on this would be helpful. Thanks.
"He who speaks of dryer sheets has not seen the clothes line." Al B. Tross