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Question for the Money Doctors

Question submitted on May 2, 2012.

Question

i am looking to gain as much interest on some sort of vehicle with a time limitation of 5 yrs - i don''t mind the investment being somewhat risky - cheers!!! bob

Answer

Bob:

"Somewhat Risky" is sort of ambiguous.  According to Bankrate.com, interest rates on 5 year bank CDs, which are FDIC insured, are currently running between  1.00% and 1.80%.  You can currently get a 14.00% yield on Republic of Cyprus bonds that have a 45 month maturity.  Standard & Poors downgraded the bonds to BB+, which is below investment grade but  a knotch above junk bond status at BBB-.

The point is that there is something for everyone, even in this interest rate environment.  The yield depends on how you define "somewhat risky.


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