1. Friday, March 2, 2012 - 7:13 AM
Pick your poison. PenFed at 2.5 for 7 or Dime at 2.25 for 5. If you believe rates have (finally) bottomed, the Dime offer is probably better. Given the current SEC yield on intermediate-term bond funds with durations at or about 5 years (2%, +/-), either is bond-fund-competitive. Indeed, any 5-year CD with a rate at or above 2% is a reasonable alternative to your garden-variety low-cost intermediate-term bond fund, and a much better alternative than an intermediate-term Treasury fund (where the risk is comparable). In the latter, SEC yields are much lower.
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