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Originally Posted by djscrib
How about good old American Treasury Bonds? 100% safe, guaranteed return on investment. Take the I-Bond (Inflation Indexed bond). It currently yield 6.73% (readjusts every 6 months). 1 year ago it yielded 4.6% (at the same time money markets were at like 2%. The interest grows tax deferred, and is exempt from state taxes (which makes the effective yield something lik 7.4% here in Oregon).
4-5 years ago they were yielding north of 9%.
www.treasurydirect.gov
(they have a 30k max per year investment, and a minimum 1 year holding period).
Thus far I can't find any reason anyone would ever choose a CD or bond yielding less then 5% when this option exists. |
What's the catch here? Have you actually bought these? Why would anyone buy coorporate bonds that yield less than that? Or buy cds that yield about half that? And why would normal treasury bonds pay 4.5% while this pays 6.5%?