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Unformatted text preview: These bills mature within three or six months. They can be sold at any time with no interest penalties applied, unlike CDs. U.S. Treasury bills pay interest on a discount basis. This means the interest paid is the difference between the purchase price and the value at maturity. If there was a concern the financial crisis would increase inflation significantly I would invest in I savings bonds. I savings bonds are issued by the U.S. Treasury and accrue semiannually for 30 years. The annual interest rate is determined by combining two elements: the fixed rate, which is the same for the life of the bond and a semi-annual inflation rate based on the CPI-U (consumer price index adjusted for inflation). Thus, returns are adjusted for inflation, offering a protection for your investment....
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This note was uploaded on 04/03/2012 for the course TAX 879 taught by Professor Small during the Spring '12 term at Suffolk.
- Spring '12