Savings Bond coupons satisfy the no - arbitrage rule, in that (i) the bond can be redeemed at any point of time at a face value of 1, (ii) the bond pays the same effective yield as a SGS bond for the same holding period.
Not exact matches
Obvious possibilities include bank certificates of deposit, zero -
coupon bonds (especially good for college - tuition
savings), short - to medium - term government
bonds, and top - rated corporate
bonds.
Go to treasurydirect.gov and check rates for I -
Bonds, the federal - government
savings coupon.
The
savings add up further if the municipal zero
coupon bond is issued by an entity in the investor's own state.
While traditional and zero -
coupon municipal
bonds are an attractive investment for many due to the tax
savings, it is vital that you understand the potential tax liabilities prior to making a purchase.
(A) in redemption of a
coupon on a bearer instrument or in redemption of a United States
savings bond, or
For the purpose of calculating the Step - up
Coupon rates for
Savings Bonds, the 1, 2, 5 and 10 - year benchmark SGS yields are used as reference.
Coupon rates for each issuance of
Savings Bonds are determined such that the return over an investor's investment period is linked to long - term Singapore Government Securities (SGS) yields.
Depending on the shape of the prevailing SGS yield curve, there may be certain occasions where the reference SGS yields do not allow a particular
Savings Bond issue to have a monotonically increasing step - up interest feature (i.e. the implied
coupon rates based on the reference SGS yields may decrease over part or all of the issue's tenor).
Advised customers with financial products and services (checking,
savings, credit cards, mortgages, CDs,
bonds and
coupons, and foreign currencies, etc..)