have old Series E bonds. The government supplied table
(by the treasury) doesn't give actual rates of earnings,
only redemption values, and interest, is there another
source of info to determine actual rate, and APR of
bonds issued in 04/57 and 07/63,07/64.
rates on the Series E Savings Bonds that you own were
fixed until the Treasury went on a market-based formula
starting November 1982. I don't know what your initial
rates are for the bonds purchased April 1957, July 1963
and July 1964, but I requested the data from the Federal
Reserve Bank, Savings Bond Division, in Buffalo, New
York. I walked over to the New York Fed today and they
said everything is now processed in Buffalo. I also
wrote to the Treasury Department. The phone line didn't
get me any live people.
Tables of redemption Values, the Guaranteed Minimum Rate
Chart, Semiannual Interest Rate Bulleting, the Treasury
Circular on Public Debt Securities 1-80 (31CFRPart 351).
Also, a list of the semiannual rates since they went on
the market-based program if not included in the above.
I received some
savings bond data from the Federal Reserve Bank. Your
bonds that were purchased in April 1957, July 1963, and
July 1964, had their maturities extended to forty years
from issue date. The bonds will cease accruing interest
after their respective extended maturity dates.
has been taken from the November 1995 (i) Tables of
Redemption Values and (ii) United States Savings Bonds
Earnings Report from the Department of the Treasury
Bureau of the Public Debt. I ran the numbers through a
yield calculation program and came up with the yields
We are assuming
$100 face value purchased at a cost of $75 on the first
days of the month listed. Redemption Values as of
February 1, 1996
1957 bond: Redemption Value $738.32. Yield from purchase
date is 6.03%.
1963 bond: Redemption Value $581.40. Yield from purchase
1994 bond: Redemption value $571.32. Yield from purchase
These bonds have
gone through various interest changes over their lives
and since November 1, 1982; the interest rate has been
based on 85% of the 5-Year Treasury bond rate, reset
every May and November first. The five-year rate is
listed below. For bonds issued after May 1, 1989 the
rate is rounded to the nearest .01 or basis point or
1/100th of 1 percentage point. Prior to that date the
rate is rounded to the nearest quarter of 1%. Thus, the
five year long term savings bond rate for the six month
period effective November 1, 1995 is 5.16%, 85% of the
5-year Treasury rate of 6.08%. I come up with 5.17% but
the Treasury maybe has a difference rounding mechanism.
then (5-Year Rate)
wife and I would like to give our new niece a US Savings
Bond. Any recommendations? She is 2 months old and we
are looking for something she can redeem at 18+ yrs old.
Interest is taxable either annually or taxes can
be deferred until the bond is cashed in. There is an
education feature that allows the interest to be
excluded from taxable income if the bond owner pays
tuition and fees at qualified educational institutions.
However, the exclusion applies only to the taxpayer, his
or her spouse, and any legal dependent. Also, only bonds
issued in the name of a person who was 24 or older can
be used for the exclusion. Bonds issued in the name of a
child as owner or co owner are not eligible. This looks
as though it leaves you out.
information ought to be available at your local library
or bank. One thing however, since the niece has about 18
years until college, why not consider an equity mutual
fund or possibly a balanced fund. Equities have proven
to have greater returns than savings bonds over an
extended period of time.
need your help to screen the authenticity on the us
treasury bonds issued in 1975 due 2005 these are 30yrs
bonds with 8 1/4 percent interest coupons. Is there any
way to verify the serial numbers, cusip numbers by
getting on line or call a phone number to us securities
or Federal Reserve or any other dept that carries such
A CUSIP number refers to the identification of a
bond issue. Serial numbers refer to the numbers assigned
to the particular pieces of paper for the bind issue. If
you need help in authenticating a bond, namely the 8
1/4s of 2005, then go to the local Federal Reserve Bank
and bring the bond certificates. They can check to see
if these are counterfeits or not. Certainly the Fed, as
agent for the Treasury, will be able to verify serial
number on particular bond paper.
I doubt if this can be done over the telephone.
You will probably find it necessary to present yourself
and you bond paper in person.
do you create or find the symbols for US notes, bonds
and bills to get daily quotes from the various online
Please view the Treasury
Section of Bondsonline.
just got married and received a $500 bond. What I'd like
to know is:
How long do I hang on to these until
"mature"? (& What exactly does that mean)
What is the current value (if any?)
Do they earn any payable interest yearly?
Any other general info you can give me, as Iím
wholly unfamiliar with savings bonds.
Your $500 U.S. Series EE Savings Bonds was
purchased at 50% of its face amount or $250.
There are two
maturity dates for the bonds. The original maturity is
17 years after the issue date and the final maturity is
30 years after issuance. Because savings bonds earn a
market rate of interest, it is not certain when it will
reach its face value. However, if the market rate of
interest is not sufficient for a bond to reach face
value in 17 years, then the US Treasury will make a
one-time adjustment to increase the redemption value to
These bonds do
NOT pay interest. Interest accrues until redemption or
maturity. For the first five years it earns a short-term
rate of interest, which is 85% of the 6-month US
Treasury bill yield. A new rate is effective each
November and May first and reflects the markets rates
for the August, September and October period and the
February, March and April period, as applicable.
are earned after five years and reflect 85% of the
five-year Treasury bond year for the same periods as
noted above. Interest is ADDED to the face value of the
bond at those May and November 1st dates AND IS NOT PAID
OUT SEMI-ANNUALLY. When you redeem you bond you will get
the value of the bond as of the last interest crediting
date. Bond cashed in between the scheduled interest
accrual dates do not get the accrued interest for the
You say that you
just received the bond. Therefore, if issued prior to
November 1, 1995, your $500 face amount bond is worth
approximately $256.60. If issued on or after November 1,
1995, the bond is only worth $250. You must confirm
these figures at a financial institution. They have be
obtained from sources believed to be reliable but not
guaranteed by me.
If you cash in
the bond, you will owe federal income taxes on the
interest. You may elect to defer the tax until the bond
is cashed in or reaches final maturity.
NOTE THAT SERIES
EE SAVINGS BONDS MUST BE HELD FOR AT LEAST SIX MONTHS. A
BOND ISSUED IN JANUARY CAN BE REDEEMED IN JULY.
rates are on the rise. Do you see a short-term turn
around with the bond market that rates could achieve a
7% again? How long, this coming week or are we looking
I am not nor have I ever been in the business of
forecasting interest rates. It seems to be a futile
effort. In the bond business I feel that one should be
concerned with the relative values of the bonds, one
against the other rather than taking short-term
speculative ins and outs where one often gets whipsawed.
Each year the Wall Street Journal reports on the
prognostications of eminent economists covering the
economy and interest rates and the record is viewed as
lousy by most. Maybe the average of them is better and
there is a service that does just that.
But today I have
dusted off my old swami's crystal ball and looked into
the near future. I feel that we will not hit the 7%
level on the long guy (about 6.40% close on Friday) in
the next two or three months. I feel that it is more
likely than not that the Fed will drop rates a notch at
the next meeting towards month's end and that a stab for
under 6.20% is possible.
am sure that you won't make any money on my opinion. It
is subject to change at any time as are all forecasts.
And, it is likely no better than yours as you probably
follow interest rates and short-term movements more
closely than I do. If I were on a bond sales and trading
desk then perhaps I would have a different view of this
type of forecasting. I remember one time that our bond
sales group made a lot of money betting against the
weekly forecasts of our tried and true (and fairly paid)
money market economist. The few others that made
anything might have been the firms that benefited from
transactions, not the short-term fluctuations of the
are the safest bonds with a fair return?
I will go on the assumption that you mean by
"safe" that the bond is free from credit risk.
I will also assume that by "fair" you mean
average compared with other current yields; neither too
low or too high. I place the emphasis on the safe or
All bonds are subject to various risks such as
credit risk, reinvestment risk, price change or market
risk caused by fluctuating interest rates. But the
safest from a credit perspective are the bonds and other
obligations issued by the US Treasury. The shorter
maturity issues usually have less market rate risk than
longer maturities. The zero coupon issues (bills and
STRIPS) don't have reinvestment risk since there is no
interest to reinvest. Since they are all subject to
interest rate movements, they have price risk with the
non-interest bearing issues subject to greater
volatility than their comparable maturity counterparts.
Series EE savings bonds don't have market risk, as
they are not marketable. You can redeem them after six
months if you need funds but they can't be sold in the
securities markets, as can other Treasury issues. One
could say the yield is fair for these, neither lousy or
super. Interest for the first five years is at the rate
of 85% of the 6-month Treasury bill yield and at 85% of
the five year Treasury bond rate thereafter to maturity
or redemption. A new interest rate is effective each May
and November first.
If Series EE bonds aren't for you then may want to
consider T-bonds in the two to five year range yielding
in the 5.40% to 5.60% range. This seems fair in my
opinion. Certificates of deposit at federally insured
banks will pay about 10 basis points more. These CDs are
insured by the Government in deposit amounts up to
$100,000. Interest on the Treasury bonds is exempt from
state income taxes. Which investment is better for you?
You have to decide if you want a marketable security or
a unmarketable CD. You must take into account the tax
consideration and transaction costs. Treasury bonds can
be purchased on the auction dates through the local
Federal Reserve Bank. If interested, call the FED. Look
in the Articles section of Bondsonline for the Treasury
Direct phone numbers.
am looking for up to the minute bond market yield
changes. Have searched the net, but can't find anything.
I was looking for the employment figures that came out
this A.M. so I could determine if the yields on the long
bond were going up.
Please view the
Bondsonline Quote/Search section. For employment
figures, you may want to try looking at the Federal
Reserve sites on the Internet. They may provide that
purchased bonds in 1986. When will they mature?
What is their interest rate?
Your Series EE US Savings Bond has an original
maturity of 30 years. Thus the bonds purchased in 1986
mature and cease to accrue interest in 2016 unless the
Treasury changes the terms. However, you can redeem the
bonds at any time.
interest rate from November 1, 1995 through the end of
April 1996 is 6.08%. However, for bonds issued prior to
May 1, 1989, the rate is rounded to the nearest 1/4 of
1%. Thus it makes the rate on your bonds 6.00%.
If your bonds were issued in Nov or Dec 1986, then the $50 face
amount bond is worth $43.52. If purchased in October,
then $48.50. If April through Sept $50.32, and January
through March, $52.22. The original purchase price of
the $50 face amount was $25.00
anyone know if there is an up to the date quote on
treasury security yields/prices?
Does the Federal Reserve
access the Internet?
see the TREASURY
section on BONDSONLINE.
you recommend software that will compute the present
value of Series E and EE Savings Bonds, if you tell it
the issue date and face value of the bond?
go our TREASURY
sure you have Internet access.) Also, see the SAVINGS
BOND section for more information on US
Savings Bonds. If you have further questions, please
E-Mail use using the E-Mail button on BONDSONLINE.
are zeros and what type of investment goals are they
Zero Coupon Bonds are those issued without any
periodic interest payments or coupon. They are sold at a
discount from par value with the amount of the discount
representing the interest due on the investment. The
amount of the discount is a factor of the length of time
to final maturity and the prevailing level of interest
Most bonds have
reinvestment risk, i.e., you do not know at what
interest rate levels you will be able to reinvest the
coupon payments. Since a zero coupon bond does not have
any interest to reinvest, you don't have reinvestment
When you buy a
zero such as a US Treasury STRIP (zero) you know what
you will end up with. No need to worry about
reinvestment. They are good investments for those who
need a certain amount at a future date and do not need
current income. You pay $X now and get par in the
future. Corporate, Treasury and other taxable zeros he
are best for tax deferred investors such as 401-Ks,
IRAs, pension plans, etc. Tax-exempt municipal zeros are
good for taxable investors. You see, the interest that
you DO NOT receive every year on a taxable zero is
considered taxable income. It is an OID, original issue
discount. Thus, you pay taxes on no incoming cash flow.
It represents a cash outflow. Tax-exempt muni zeros do
not have the taxes on "phantom" current
Zeros are most
attractive when interest rates are high since you lock
in a return to maturity or first call. Check the call
provisions carefully. Many taxable zeros are only
callable at par. But some and many muni issues are
callable at the accreted value, which is the issue price
plus the accrued and unpaid interest. In some cases
there may be a small call premium.
Investigate before you invest. Remember, there is
no such thing as a free lunch.
you see the recent weakness in bonds as a buying
opportunity or as the beginning of a bear market in
bonds? Please elaborate on your answer.
I really do not forecast interest rate movements.
One is more often wrong than right. I have not yet found
a good crystal ball.
considering selling some 1-year old T-notes of 5,000 and
10,000 denominations. What is the most efficient
way to do so ? Will the Treasury sell them for me
and/or buy them back? Are there any legal/SEC
repercussions of offering them for sale myself on the
There are two easy ways to sell
Treasuries through your friendly broker/dealer
firm, or: directly through the Treasury. In the
last few years the Treasury has developed a program
called Sell Direct.
You can find more on this program at www.treasurydirect.gov/sec/secselld.htm.
I am not a lawyer so I will not give you a legal
opinion as to SEC/Legal repercussions of your offering
them for sale on the Net. But I do have a question. If
you were to find some unknown character who would buy
these from you without knowing who you are, how will you
deliver them to the buyer? Will you take care of the
transfer of ownership?
an Italian trader. I would like to know which was the
absolute low price really made by t-bond 30 yr, the date
in which it was made, the contract (March, June) that
made it and if it was the contract with maximum open
interest. I would like to ask you which objective in
price you have for the bearish side of the market and
which timing objective.
I am not a
forecaster of futures prices and so I will not give you
a price objective on the bearish side of the market.
Since you are a trader, you must be in minute-by-minute
contact with others throughout the world who are also in
second by second contact with the market. Certainly,
they might come to a better opinion that I could
possibly give you.
As far as low
price of 30-year T bond contract, I suggest that perhaps
the Bloomberg service has the information. They have
extensive historical information for those who use it. I
cannot do this research for you.
would anyone go to all the trouble of opening a treasury
direct account with all the paperwork involved including
the fact that all transactions are by mail only, when
it's possible to buy treasuries at issue at a nominal
fee and much better service from discount brokers such
as Fidelity discount ($50 fee) or Vanguard ($25 fee).
You may think
TreasuryDirect is a bother but obviously many others
don't have the same feeling. In fact, existing customers
of Treasury Direct can transact business three
different ways: mail, automated phone service (800
722-2678) and on the web (www.treasurydirect.gov).
Some investors may not want
to pay even a small fee. Others may not have brokerage
accounts at Vanguard or Fidelity. People do many things
that others may not think are rational. However, the
heart has its reasons.
matter to me if they buy from a full service firm, a
discount brokerage, Treasury Direct, or from their
bother-in-law. The psychology of these people is a whole
doing research for a class project, and I would like to
know where I could search on the Internet to find
historical data for Lehman Brothers T-Bond Index?
Strategy group at Lehman issued a report on April 22,
1996 called "The Persistence of Corporate Asset
Class utopia." The reports list the names and Email
address of the strategy folks at Lehman. Perhaps they
could give info on how to get the Lehman Treasury index.
The names and
am a federal government employee and got my arm twisted
back in July of '88 to purchase savings bonds. I have a
continuous stream of $50 bonds received each pay period
(26 per year) until October '90 when it switched to $100
bonds received approximately one a month (13 per year)
to the present date. I want to know the present value.
When I go to the bank, they want to look each bond up in
a book and tell me the individual value of each bond. I
am looking for a way to calculate present value as a
continuous stream, not bond by bond. Somewhere in the
course of the purchase, the bonds changed series also.
Can you help me? There must be a present value formula.
Sorry, but there is no easy way to get the current
value of you more than 100 Series EE savings bonds.
Interest rates change every six months. You have
different holding periods.
You can get the tables of redemption values
PD-3600 from the Bureau of the Public Debt, Savings
Bonds Marketing Office, Washington DC 20226.
Also, go to the redemption calculator on the Treasury
page on BONDSONLINE.
can I redeem a EE treasury bond outside the U.S.?
I would suggest you contact your regional Federal
Reserve Bank or branch. Look at the Treasury Direct
Program document on the Treasury
page on BONDSONLINE for the information you
can I find the present value of two $10,000 savings
bonds purchased in 9/92?
Try the redemption calculator for savings bonds on
Bond page of BONDSONLINE.
to get duplicate us treasury bonds? My bonds were lost
while moving. Who do I need to contact about this
at the US Savings Bond Overview document on the Savings
Bond page of BONDSONLINE. There is a specific
section on lost or stolen bonds and how to replace them.