How come I have saving bonds that say 100 on it, but its actual purchue price was only $50?
2007-03-04 13:28:09 · 6 answers · asked by Keli D 2 in Business & Finance ➔ Personal Finance
I have a couple saving bonds that are over ten years old and arent worth $100 yet. So im pretty sure u two are both wrong...
2007-03-04 13:42:31 · update #1
When it reaches maturity in ten years it will be worth $100.00. You pay fifty dollars now for $100.00 in ten years.
2007-03-04 13:31:42 · answer #1 · answered by JAN 7 · 0⤊ 1⤋
Savings bonds are issued at 1/2 of their face value and the maturity is determined by the interest rate it pays. For example, a $100 bond that pays 5% interest costs $50 and will mature at $100 in about 15 1/2 years, but if you were to earn 10% then it would mature in about 8 years. If you take the bond into a bank, they can help you determine the current value, and the maturity date. You can cash them in early, but could be penalized.
2007-03-04 22:31:42 · answer #2 · answered by Willy179 2 · 0⤊ 0⤋
Actually they are correct. So, if you have a bond that is over 10 years old then obviously that is not the maturity date. The first thing you need to do is find out the maturity date on the bonds.
2007-03-08 14:51:57 · answer #3 · answered by Lorraine 1 · 0⤊ 0⤋
You purchased it for $50 but when it matures, it will be worth $100. It's the interest paid on the bond.
You'll have to look at the maturity date on it to figure out when it's going to be worth $100.
2007-03-04 21:31:42 · answer #4 · answered by Faye H 6 · 0⤊ 0⤋
That is a series EE savings bond. It is purchased for half of its face value. Series I bonds are purchased for face value, but you'll also get a higher rate of interest on it. The link below is a government link with all the info you'll need.
2007-03-05 21:04:10 · answer #5 · answered by cathysue785 2 · 0⤊ 0⤋
they are right. u pay $50 and get $100 at maturity. u can cash them in now for their current value.
2007-03-04 22:31:49 · answer #6 · answered by zocko 5 · 0⤊ 0⤋