3 ms·
For those of us who were confused (like me), this is not a treasury bond, but a real return bond. It pays interest based on a posted rate, plus additional inter
by Naga 5y ago
For those of us who were confused (like me), this is not a treasury bond, but a real return bond. It pays interest based on a posted rate, plus additional interest to cover inflation for a period. The inflation rate will change twice a year based on inflation.
- pjc50 5y agoIt is a treasury bond, in that it's issued by the US treasury and therefore has the risk-free property. It just pays more than the open market rate for t-bills because it's a special product to subsidise individual savers.
- ethbr0 5y agoSee here: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm https://www.treasurydirect.gov/indiv/research/indepth/ibonds...