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Non-Tech : Kirk's Market Thoughts
COHR 181.35+1.7%12:34 PM EST

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To: robert b furman who wrote (3567)11/2/2015 11:28:03 AM
From: Kirk ©  Read Replies (1) of 26769
 
After paying zero for 6 months, they have a nice snapback. I recommended subscribers wait for the end of the year to buy and now we get rewarded with a positive 0.10% base rate.

Good iBond rates: 1.64%
Some of the older ones pay up to 5.17%!
When the inflation rate is less than zero, the earnings rate will be less than the fixed rate but never less than zero.
  • Fixed rate = 0.10%
  • 6 month Inflation rate = +0.77%
  • Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
  • [0.0010 + (2 x 0.0077) + (0.0010 x 0.0077)]= [0.0010 + 0.0154 + 0.0000077)] = 0.0164077
  • 0.0164077 x 100% = +1.64%
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