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  • 30-year Treasury Bonds
    Treasury Bonds are scheduled for their first auction on February 2006 and subsequent auctions will be held every six months. Once the mainstay of pensions and conservative investors, the 30-year bond was no longer auctioned in 2000 largely because of the high yield that was offered over an extended period.

    The re-introduction of the bond offers investors a long term view of the American economy while promoting investor confidence.

    Traditionally, these bonds have offered a way to diversify an investment portfolio, help finance education expenses, and given retirees a steady income.


      Minimum Purchase:
      $1,000

      Investment Increment:
      Multiples of $1,000

      Issue Method:
      Electronic


    The Rates and Terms
    • Treasury Bonds rates are determined at auction and the price depends on not only its yield to maturity but the interest rate. According to Treasury Direct, should the yield to maturity be greater than the interest rate, the price of the bond will be less than par value. If the price is greater than par, the interest rate will be greater than the yield to maturity. And should both the interest rate and the yield to maturity be the same, the price will be equal to par value.

      This is perhaps best illustrated in the following table.
      Condition Type of Security Yield at Auction Interest Coupon Rate Price Explanation
      Discount (price below par) 30-year Bond
      Issue Date: 8/15/2005
      4.35% 4.25% 98.333317 Below par price required to equate to 4.35% yield
      Premium (price above par) 30-year Bond reopening*
      Issue Date: 9/15/2005
      3.99% 4.25% 104.511963 Above par price required to equate to 3.99% yield



    You can buy EE Bonds here. If you have additional questions about these investments, you can find the answers here

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