Savings bonds, retractable bonds and callable bonds are each equivalent to a straight bond with an option. Neglecting default risk the value of these contingent claims depends upon the riskless interest rate. This paper employs the option pricing framework to value these bonds, under the assumptions that the interest rate follows a Gauss-Wiener.
Treasury guarantees that for an electronic EE Bond with a June 2003 or later issue date, after 20 years, the redemption (cash-in) value will be at least twice the purchase price of the bond. If the redemption (cash-in) value is not at least twice the purchase price of the electronic bond as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time.
Savings bonds are a type of bond, or debt security, issued by the U.S. government. Unlike typical bonds that pay interest regularly, a savings bond is a “zero coupon” bond, meaning that it.
US savings bonds can be taken to the bank to determine their current value or you can calculate the value by entering information regarding the savings bond into an online calculator. Savings bond calculators can be found on several websites with one of the most popular being Treasury Direct which is brought to you by the US Department of Treasury Bureau of Public Debt.
The official US Savings Bonds web site offers a huge amount of information, including information about the current redemption value (CRV) of bonds. It also can enroll you in the Treasury Direct program, which lets you purchase Series EE (denominations 50 to 1000) and I Bonds (denominations 50 to 500) via direct debit from a bank account (purchases with a credit card ended in 2003).
Savings bonds are a good way to make your money work harder, if you can afford to tie up your cash into a bond. They work differently to easy-access savings accounts, as they come with a fixed rate of interest over the set term, or time period. This can be anything from between six months and five years.
When we publish our monthly list of high value Premium Bonds prize winners, we provide general details about the area each winner comes from. To protect winners’ anonymity and help keep their personal details confidential, we only list an area when there are at least 100,000 Premium Bonds holders living there. Each customer is assigned to a town, local authority, county or Government.
This simple savings calculator estimates the future value of your savings after a number of years making regular deposits. It assumes a fixed rate of return, but the actual interest rate may change over time, depending on the type of investment and market fluctuations. The earnings are compounded according to the deposit frequency that you choose, and it is assumed that the deposits are made.