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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%