You're making it too complicated, suzie2012. The I Bond you purchased in March 2003 has a 1.60% fixed rate. All the composite rates do is add in the change in Consumer Prices over the most recent six-month period. This keeps your real return in terms of purchasing power at 1.6%. E.g., if what you paid for your I Bond in 2003 could have bought 1,000 golf balls, the I Bond's value 21 years later will buy about 1,400 golf balls. [1]I do not know who invented [ I Bonds ], but I don't beleive they could have made them more complicated and hard to understand ... I will most likely use the link for All rates together in one chart: , as what's in the account might be soon dated and I do not want to make decisions based on it. It seems that I have to go through this exercise for each bond that I have, figure out these dates, etc.
According to this TreasuryDirect webpage these three EE bonds have an original maturity date 20 years after issuance and a final maturity date 30 years after issuance. The original maturity date is important because the bond's value will double at that time. Don't redeem any of these three bonds before August, September, or April respectively. For example, a $500 EE bond bought August 2004 would be worth only $754.80 if redeemed this month. But just one month later in August, it would be worth $1,000.... how do I find the original maturity date for 3 EE bonds:
- issued 08/01/2004
- issued 09/01/2004
- issued 04/01/2005.
Here's a table showing how the July 2024 $754.80 value is arrived at. [2][3]
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Row Col A Col B ColC Col D Selected formulas 2 Value date Jul-2024 3 Face value 500.00 4 Multiplier 40 B4: =B3/12.5 5 Date Rate # Mo ValueCode:
6 Aug-2004 2.84% 500.00 D6: =B3 7 Feb-2005 3.25% 6 507.20 A7: =MIN(B$2,DATE(YEAR(A6),MONTH(A6)+6,DAY(A6))) 8 Aug-2005 3.42% 6 515.60 C8: =12*(YEAR(A8)-YEAR(A7))+MONTH(A8)-MONTH(A7) 9 Feb-2006 3.61% 6 524.40 D9: =MAX(IF(A9=EDATE(A$6,240),2*$B$3,0),$B$4*ROUND((D8/$B$4)*(1+B8/2)^(C9/6),2)) 10 Aug-2006 4.11% 6 534.00 | | | 11 Feb-2007 4.39% 6 544.80 | | | 12 Aug-2007 4.15% 6 556.80 | | | 13 Feb-2008 4.11% 6 568.40 | | | 14 Aug-2008 2.74% 6 580.00 | | | 15 Feb-2009 2.80% 6 588.00 | | | 16 Aug-2009 1.64% 6 596.40 | | | 17 Feb-2010 2.19% 6 601.20 | | | 18 Aug-2010 2.16% 6 607.60 | | | 19 Feb-2011 1.50% 6 614.00 | | | 20 Aug-2011 1.77% 6 618.80 | | | 21 Feb-2012 1.19% 6 624.40 | | | 22 Aug-2012 0.81% 6 628.00 | | | 23 Feb-2013 0.63% 6 630.40 | | | 24 Aug-2013 0.68% 6 632.40 | | | 25 Feb-2014 1.19% 6 634.40 | | | 26 Aug-2014 1.42% 6 638.00 | | | 27 Feb-2015 1.49% 6 642.40 | | | 28 Aug-2015 1.35% 6 647.20 | | | 29 Feb-2016 1.39% 6 651.60 | | | 30 Aug-2016 1.31% 6 656.00 | | | 31 Feb-2017 1.07% 6 660.40 | | | 32 Aug-2017 1.68% 6 664.00 | | | 33 Feb-2018 1.66% 6 669.60 | | | 34 Aug-2018 2.18% 6 675.20 | | | 35 Feb-2019 2.56% 6 682.40 | | | 36 Aug-2019 2.30% 6 691.20 | | | 37 Feb-2020 1.57% 6 699.20 | | | 38 Aug-2020 1.08% 6 704.80 | | | 39 Feb-2021 0.28% 6 708.80 | | | 40 Aug-2021 0.52% 6 709.60 | | | 41 Feb-2022 0.77% 6 711.60 | | | 42 Aug-2022 1.60% 6 714.40 | | | 43 Feb-2023 2.99% 6 720.00 v v v 44 Aug-2023 3.41% 6 730.80 A44: =MIN(B$2,DATE(YEAR(A43),MONTH(A43)+6,DAY(A43))) 45 Feb-2024 3.79% 6 743.20 C45: =12*(YEAR(A45)-YEAR(A44))+MONTH(A45)-MONTH(A44) 46 Jul-2024 3.81% 5 754.80 D46: =MAX(IF(A46=EDATE(A$6,240),2*$B$3,0),$B$4*ROUND((D45/$B$4)*(1+B45/2)^(C46/6),2))- 1,396 = 1000 * 1.016 ^ 21. Of course, this illustration assumes the price of golf balls increases the same as the Consumer Price Index (CPI).
- The $754.80 can be confirmed with the Savings Bond Calculator. Enter the following and then click [Calculate]:
Code:
Value as of: 07/2024Series: EE BondsDenomination: $1,000Bond Serial Number: (leave blank)Issue Date: 08/2004 - The rates in column B of the table are taken from the section, What have interest rates been for EE bonds we issued from May 1997 through April 2005?, of this TreasuryDirect webpage. The Treasury sets them at 90% of the average rate of 5-year Treasury notes during the previous six months.
Statistics: Posted by #Cruncher — Wed Jul 24, 2024 8:02 am — Replies 10 — Views 734