Home › Forums › Financial Markets/Economics › I-bond rate is impressive › svelte wrote:Why does anyone
[quote=svelte]Why does anyone think this is a good deal?
The fixed rate is zero and remains that way for the life of the bond.
Therefore, the rate of the bond is twice the semi-annual inflation rate, ie it is the rate of inflation. And that is calculated twice a year.
In other words, your money is just staying pace with the rate of inflation!
You’re not making money – you’re just breaking even![/quote]
In a world of investments full of negative expected return, breaking even looks pretty good: https://www.gmo.com/americas/research-library/gmo-7-year-asset-class-forecast-october-2021/
