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The St. Louis Federal Reserve Board has files listing historical interest rates on its website www.stlouisfed.org. Find the link for FRED (Federal Reserve Economic Data).
The St. Louis Federal Reserve Board has files listing historical interest rates on its website www.stlouisfed.org. Find the link for FRED (Federal Reserve Economic Data). You will find listings for Moody's Seasoned Aaa Corporate Bond Yield and Moody's Seasoned Baa Corporate Bond Yield. (These rates are discussed in the next chapter.) If you invest $2,000 per year for the next 40 years at the most recent Aaa yield, how much will you have? What if you invest the same amount at the Baa yield?
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