Fidelity Fixed Income questions

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andyandyandy
Posts: 429
Joined: Sat Jan 18, 2014 11:36 am

Fidelity Fixed Income questions

Post by andyandyandy »

Gurus,

I have a couple of questions from Fidelity's Fixed Income section and appreciate your help!

1) United States Treasury - 6-month yield shows 4.83 but 3rd Party price shows 97.606. If I buy at 97.606 ,won't the yield be around 2.4 % or little higher but not 4.83?

2) Corporate A/A shows 6.29% for 6 months(Credit Suisse). I understand Corporate bonds are risky but have anybody tried to? How much is the risk vs reward?

Thanks for your valuable input!
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welderwannabe
Posts: 1444
Joined: Fri Jun 16, 2017 8:32 am

Re: Fidelity Fixed Income questions

Post by welderwannabe »

As to the Treasury, it is a coupon treasury? it may pay interest, if for example you're buying a 10 year note that happens to mature in 6 months.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.
rbd789
Posts: 110
Joined: Fri Jul 24, 2020 2:58 pm

Re: Fidelity Fixed Income questions

Post by rbd789 »

andyandyandy wrote: Tue Jan 24, 2023 2:19 pm Gurus,

I have a couple of questions from Fidelity's Fixed Income section and appreciate your help!

1) United States Treasury - 6-month yield shows 4.83 but 3rd Party price shows 97.606. If I buy at 97.606 ,won't the yield be around 2.4 % or little higher but not 4.83?

2) Corporate A/A shows 6.29% for 6 months(Credit Suisse). I understand Corporate bonds are risky but have anybody tried to? How much is the risk vs reward?

Thanks for your valuable input!
4.8% for 6 months. 2.4% annualized.

Edit: Got that backwards, but you get the point.
Topic Author
andyandyandy
Posts: 429
Joined: Sat Jan 18, 2014 11:36 am

Re: Fidelity Fixed Income questions

Post by andyandyandy »

Topic Author
andyandyandy
Posts: 429
Joined: Sat Jan 18, 2014 11:36 am

Re: Fidelity Fixed Income questions

Post by andyandyandy »

rbd789 wrote: Tue Jan 24, 2023 2:27 pm
andyandyandy wrote: Tue Jan 24, 2023 2:19 pm Gurus,

I have a couple of questions from Fidelity's Fixed Income section and appreciate your help!

1) United States Treasury - 6-month yield shows 4.83 but 3rd Party price shows 97.606. If I buy at 97.606 ,won't the yield be around 2.4 % or little higher but not 4.83?

2) Corporate A/A shows 6.29% for 6 months(Credit Suisse). I understand Corporate bonds are risky but have anybody tried to? How much is the risk vs reward?

Thanks for your valuable input!
Got it!! Thanks.

Anybody comments on Corporate A/A?

4.8% for 6 months. 2.4% annualized.

Edit: Got that backwards, but you get the point.
carminered2019
Posts: 1595
Joined: Fri Jun 21, 2019 7:06 pm

Re: Fidelity Fixed Income questions

Post by carminered2019 »

I take risk in stock or go higher in the equity side, I take no risk on the FI side so I stay with CD, I bond and US treasuries. My AA is 90/10.
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