Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, rising prices have affected both consumer goods and some government savings bonds. However, they could also benefit investors looking for safe spaces for their money.

Questions:

  1. What type of return will the new series I savings bonds, known as inflation bonds to be issued in the next six months, earn?
  2. How does this rate compare to other government bonds issued?
  3. How does the rate of the I series compare to one-year, online certificates of deposit?
  4. Would the I series bonds be considered cash equivalents?

Source:

Carrns, A. (2021). Inflation Bonds Are Getting a Big Rate Bump. The New York Times, Nov. 5 (Retrievable online at https://www.nytimes.com/2021/11/03/your-money/series-i-bonds-inflation-rate.html)