Telefonica
Senior Member
- Joined
- Nov 20, 2009
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I have a really dumb question about calculating return on a U.S. government bond investment.
Rates are shown at the following site:
http://www.treasury.gov/resource-ce...interest-rates/Pages/TextView.aspx?data=yield
Let's take the 8/8/2011 data as an example. The one month rate is 0.02. Does this mean that if I purchase $1,000 of this bond, I will have paid $999.80? i.e. 999.8 x (1 + 0.02 / 100) = 1,000
Are the ones longer than a year compounded annually at the rates shown?
A 1 year bond at 0.11% return seems like a silly investment... I must be interpreting this data incorrectly.
Thanks.
Rates are shown at the following site:
http://www.treasury.gov/resource-ce...interest-rates/Pages/TextView.aspx?data=yield
Let's take the 8/8/2011 data as an example. The one month rate is 0.02. Does this mean that if I purchase $1,000 of this bond, I will have paid $999.80? i.e. 999.8 x (1 + 0.02 / 100) = 1,000
Are the ones longer than a year compounded annually at the rates shown?
A 1 year bond at 0.11% return seems like a silly investment... I must be interpreting this data incorrectly.
Thanks.
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