These aren't exciting or widely advertised, but they are guaranteed to double your money in 20 years--four years earlier than with a 30-year U.S. Treasury bond
, thereby yielding 3.6% as Long as you hold them for at Least 20 years.
The 30-year U.S. Treasury bond
was down 25/32, with the yield at 4.13 percent.
EVA Bonus: $35,000 Fair Market Value of Stock (FMV): $36.4375 per share 30-Year U.S. Treasury Bond
Rate: 7.4% Deemed Cost of Capital (COC): 8.4% (U.S.
At the same time, U.S. Treasury bond
yields also rose.
Those funds were the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), iShares iBoxx USD High Yield Corporate Bond ETF (HYG), iShares Broad USD High Yield Corporate Bond ETF (USHY), and the iShares U.S. Treasury Bond
Earlier Tuesday, the yield briefly went up to 0.735 percent on selling triggered by the U.S. Treasury bond
market's decline overnight.
"Following a lackluster employment report for June, long-term U.S. Treasury bond
yields eased somewhat this week allowing fixed mortgage rates to reach yet another record low," said Frank Nothaft, chief economist of Freddie Mac, in a statement.
In the case of a 10-year U.S. Treasury bond
, 4% interest per annum requires a decade-long commitment.
A five-year U.S. Treasury bond
now pays an annual yield of less than 3%--close to the historic U.S.
Fair value is the amount, such as the current price of a five-year U.S. treasury bond
, at which an investment could be exchanged between two willing parties.
The top five funds were the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), Vanguard Mortgage-Backed Securities ETF (VMBS), iShares U.S. Treasury Bond
ETF (GOVT), Vanguard Short-Term Bond ETF (BSV), and iShares Core U.S.