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I-Bond Fixed Rate Percentage
09-26-2005, 03:00 PM
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#1
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Full time employment: Posting here.
Join Date: Aug 2005
Posts: 945
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I-Bond Fixed Rate Percentage
Does the fixed rate % part of the bond ever change? If so what makes it change? Do interest rates going up effect it's yield? How so? I am not talking about the inflation index rate which changes with inflation.
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 03:03 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,321
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Re: I-Bond Fixed Rate Percentage
No, the fixed rate does not go up ... that's why its called "fixed".
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 03:11 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2003
Posts: 4,459
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Re: I-Bond Fixed Rate Percentage
Well, the fixed rate for a given bond never changes. But the fixed rate for new issues changes every six months. I haven't seen them publish the algorithm, but it's probably based on the market average for 5-year TIPS. The 5-year real rate has inched up a bit (currently about 1.5%), so you'll probably see an increase in the fixed rate of i-bonds for the new issue in November.
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 04:40 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Re: I-Bond Fixed Rate Percentage
And buy them on the last* business day of the month: Your cash earns from the 1st and your bond earns from the first. 8)
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 05:43 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
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Re: I-Bond Fixed Rate Percentage
Quote:
Originally Posted by JPatrick
And buy them on the last* business day of the month: Your cash earns from the 1st and your bond earns from the first. 8)
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Good tip!
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 05:53 PM
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#6
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Full time employment: Posting here.
Join Date: Aug 2005
Posts: 945
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Re: I-Bond Fixed Rate Percentage
Yes, I realize it doesn't go up after you purchase it. I am talking about when they issue new bonds. What is that rate tied to that makes it go up or down?
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 06:38 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Re: I-Bond Fixed Rate Percentage
Some random imaginary number thats way too freakin low.
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 06:42 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Dec 2003
Posts: 4,459
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Re: I-Bond Fixed Rate Percentage
Quote:
Originally Posted by ()
Some random imaginary number thats way too freakin low.
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Blame the market. The real return is completely market driven. As I said, it's currently 1.5% for 5-year TIPS, and i-bonds are more-or-less 5-year TIPS, so I'm sure that's what the treasury uses to determine new issue rates (at least that's been true in the past).
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Re: I-Bond Fixed Rate Percentage
09-26-2005, 08:48 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Location: Portland, Oregon
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Re: I-Bond Fixed Rate Percentage
(), that is the % in addition to the CPI.
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Re: I-Bond Fixed Rate Percentage
09-27-2005, 07:32 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
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Re: I-Bond Fixed Rate Percentage
OK then...some random imaginary number thats way too low, added to another imaginary number manipulated number that bears little resemblance to actual inflation
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: I-Bond Fixed Rate Percentage
11-01-2005, 09:19 AM
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#11
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Recycles dryer sheets
Join Date: Oct 2004
Posts: 214
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Re: I-Bond Fixed Rate Percentage
I thought the fixed rate was due to be posted today, but it hasn't shown up on the Treasury web site yet?
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