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Post by chang on Aug 11, 2021 1:31:54 GMT
In July 2016 I bought a Singapore savings bond. It's a 10-year bond, redeemable at any time. It pays interest twice a year. The initial rate is low (0.93% in Year 1) and increases to 2.82% in Year 10. If held to maturity, the APY rate is 2.06%. This chart shows everything: Year from issue date 1 2 3 4 5 6 7 8 9 10 Interest,% 0.93% 1.15% 1.62% 2.15% 2.41% 2.41% 2.42% 2.46% 2.57% 2.82% Average p.a. return, % 0.93% 1.04% 1.23% 1.46% 1.64% 1.76% 1.85% 1.92% 1.99% 2.06%So right now I've made a mezmerizing 1.64%. I'm wondering whether to sell it and invest the proceeds elsewhere, or keep it. Right now it's earning 2.41% (and it will climb very slowly from here). That's more than I'm earning in VUSFX. The other issue is the USD/SGD exchange rate ( link and see below). It's been fairly stable, in recent years bouncing around between 1.30-1.45 SGD/USD. Right now it's 1.35 -- meaning the SGD is a little weaker than normal. It jumped to 1.45 in March, which would have been a better time to sell. I'm thinking that the thing to do might be to watch the FX chart, and sell if it hits 1.45 again. Any better ideas?
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Post by anitya on Aug 11, 2021 1:51:18 GMT
No, you got it.
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Post by yogibearbull on Aug 11, 2021 2:51:17 GMT
It is better than average stable-value fund in the US. I am lucky to have access to a SV paying 3%+ guaranteed. Federal TSP G Fund (SV) isn't paying much these days (1.25%? changes monthly). Of course, it is also helping out the government during the debt-ceiling fiasco ( LINK).
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