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The value of a paper savings bond can be checked by using the savings bond calculator on the TreasuryDirect website and entering this information found on bond: Issue date. Bond series.
The guaranteed minimum investment yield for the bonds was 4 percent, compounded semiannually. [11] Interest was exempt from state and local taxes, but was subject to federal taxes. [12] Series E bonds were sold at 75% of face value and had a 2.9% interest rate compounded semiannually. [13]
For example, a $50 Series E bond from December 1942 is worth $199.90 in February 2025, according to the U.S. Treasury website —- several times its original purchase price.
Bonds are sold at less than face value, for example, a $50 Series EE bond may cost $25. Bonds accrue interest, and your gains are compounded , meaning that interest is earned on interest.
Series E bonds were introduced in 1941 as war bonds but continued to be a retail investment long after the end of World War II. Issued at a discount of the face value, the bonds could be redeemed for the full face value when the bond matured after a number of years that varied with the interest rate at the time of issuance.
Bond valuation is the process by which an investor arrives at an estimate of the theoretical fair value, or intrinsic worth, of a bond.As with any security or capital investment, the theoretical fair value of a bond is the present value of the stream of cash flows it is expected to generate.
Verify your bond’s value – Use the TreasuryDirect Savings Bond Calculator to check its current worth. Redeem at a bank or credit union – Most financial institutions can cash in savings bonds.
Here Face value is the face value of the bond, and Clean price is the clean price of the bond (i.e. present value of the bond with accrued interest subtracted). Formula for adjusted current yield [ edit ]