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Has Anyone Bought Zeros Instead?

Posted: Mon Apr 26, 2010 7:51 pm
by doug6zj9
Has anyone bought Zeros instead of the coupon paying Treasuries?  Or have you studied how they behave comparatively?  I see they are priced less than half.  Does it follow that they are twice as volatile then? 

Re: Has Anyone Bought Zeros Instead?

Posted: Mon Apr 26, 2010 8:45 pm
by MediumTex
I believe they are about 1.5 times as volatile as similar duration coupon bonds.

I own a little EDV.

Re: Has Anyone Bought Zeros Instead?

Posted: Tue Apr 27, 2010 5:33 pm
by Quasimodo
We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.

As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.

John

Re: Has Anyone Bought Zeros Instead?

Posted: Wed Apr 28, 2010 1:25 am
by doug6zj9
Quasimodo wrote: We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.

As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.
And I see TLT, which many seem to favor, went up 1.41%