Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (258057)	8/28/2003 11:13:22 PM
From: James F. Hopkins	Respond to of 436258

If you cash it before 5 yrs, you lose the last 3 months of interest...like 1 yr you get 9 month interest 18 month you get 15, and so on up to 5yr They are tax deferred until cashed. The rate can also change twice a year with the CPI.. the more inflation the more they pay, less inflation and they pay less. The base rate (fixed part ) will be reduced in NOV to reflect the last FED rate cut, but for now that rate cut hasn't gotten priced in. The fixed part stays with the bond as long as you hold it, but the inflation part can change. To hold or fold will depend on what GreedSpam does with rates going forward, and how they tinker with the CPI.. Other than having to hold for a year..they are a nice short term place to park extra money. even if you cash it in a year it's about 3.5% which is still better than the 5yr TSY. Jim PS people who bought back in May to Oct 2000 are now getting 7.2%.. My average is just under 6%..