StudentShare solutions
Triangle menu

Investing in Savings Bonds - Coursework Example

Not dowloaded yet

Extract of sample
Investing in Savings Bonds

They have been done on an annual basis from January 2011 to January 2012. The calculations are for $ 50, $ 100, $ 500, and $ 5,000. Series Denom Issue date Next accrual Final maturity Issue price Interest Interest rate Value EE $ 50 01/2011 02/2012 01/2041 $ 25.00 $ 0.12 0.60% $ 25.12 EE $ 100 01/2011 02/2012 01/2041 $ 50.00 $ O.24 0.60% $ 50.24 EE $ 500 01/2011 02/2012 01/2041 $ 250.00 $ 1.20 0.85% $ 251.20 EE $ 5000 01/2011 02/2012 01/2041 $ 2,500.00 $ 12.00 0.60% $ 2,512.00 EE $ 50 01/2011 02/2012 01/2041 $ 50.00 $ 0.76 3.06% $ 50.76 EE $ 100 01/2011 02/2012 01/2041 $ 100.00 $ 1.52 3.06% $ 101.52 EE $ 500 01/2111 02/2012 01/2041 $ 500.00 $ 7.60 3.06% $ 507.60 EE $ 5,000 01/2011 02/2012 01/2041 $ 5,000.00 $ 76.00 3.06% $5,076.00 EE savings bonds EE Savings bonds are low risk savings that are safe and pay interests basing on the current market rates. These savings bonds may be purchased directly via TreasuryDirect. If one is a owner of an account in TreasuryDirect then he can purchase, manage, and redeem the bonds through a web browser (Thau, 20010. These savings bonds can be used to fund education, complement retirement income, and offered as a gift. The current interest rate of these savings bonds is at 0.60% which is a fixed rate. The minimum purchase is $ 25 while the maximum is $ 10,000. E savings bonds This savings were introduced in 1941. These savings bonds were being promoted as war bonds by the government of United States between 1941 and 1980. The minimum purchase is $ 25 while the maximum is $ 10,000. These savings bonds were advertised through the media and other channels thus they became popular during those times until 1980.in 1980 the series was substituted by the EE savings bonds. The savings bonds had two maturity periods of 40 years and 30 years respectively (Lasser, 2011). I savings bonds These are the newest savings bonds and they are almost similar to the EE bonds. The difference between the two comes in the calculation of their reset interest rates. These begin earning interest immediately after issue. These savings binds can be redeemed at any time after a one year holding period. Their security is accrual-type and if they have any interest it is usually included to the bond every month. They are low risk and they earn interest while at the same time protecting the owner from inflation. They may be purchased via TreasuryDirect or with IRS tax refund. They can also be purchased directly from ones web browser. The least purchase for this is $ 50 while buying paper bonds with IRS tax refund and $ 25 when purchased directly via TreasuryDirect. The maximum value that can be purchased is $ 10,000 in TreasuryDirect and $ 5,000 with IRS tax refund. Their current rates are at 3.06% and this will remain all through to the end of April 2012 (Lasser, 2011). Savings Notes These are also referred to as freedom shares. They were issued at a discount of 81 percent of the face amount which could vary. The savings notes were mainly introduced to encourage people in United States to save by investing. This began in 1967 whereby they came alongside the E series savings bonds. They are redeemable at anywhere any time at the most recent semiannual accrual value. The original maturity for this was four and half years however there are optional extensions of two 10-year periods (Thau, 2001). The savings notes ...Show more

Summary

Instructor: Investing in Savings Bonds There are different types of savings bonds in United States. Some of them are preferred to others due to some reasons in the financial world. The maturity periods of the savings bonds are different with each having some duration after which owners can begin redeeming…
Author : adelbert84
Investing in Savings Bonds essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Investing in Savings Bonds"
with a personal 20% discount.
Grab the best paper

Related Essays

International aspects of business law
One of the oldest forms of international trading is arbitrage, the discovery of lower prices in one market and profitable resale opportunities in other environments globally. For traders of commodities which require physical transportation and delivery to other markets, international agreements will apply to the transaction as well as to import taxes and duties.
8 pages (2000 words) Coursework
Saving for the Future Coursework
In order to purchase this car I would be required to pay $125,000 (ProTeam Classic Corvette Sales, 2012). Since the purchase price of the car is $125,000 a simple calculation reveals that the buyer would be required to save an amount equal to $125,000/5= $25,000 per year.
4 pages (1000 words) Coursework
Tax exempt bonds
Accounting Question one Tax exempt health care organizations rely upon bond issues to finance large scale capital projects. Describe the process in which the board and senior leadership take the organization to the capital market. What is the advantage of tax exempt bonds to both the issuer and investors?
3 pages (750 words) Coursework
Financial Planning Coursework
I got an overall idea of what financial planning is about and what to expect out of it. It helped me take up an initiative to begin planning. The worksheets helped me understand my family's spending pattern better. It also helped me assess my own preferences when it came to money matters.
41 pages (10250 words) Coursework
How has the global financial crisis affected the international economy
“A collapse of the US sub-prime mortgage market and the reversal of the housing boom in other industrialized economies have had a ripple effect around the world”, asserts Shah (2010). Following this, there
4 pages (1000 words) Coursework
Business plan - (investment)
“It is most important to analyze the cash flow statements of a business before making investment. Cash flow statements of a company show how well the company
2 pages (500 words) Coursework
FMRI
(BME, 17). Bank deposits are the most popular in the European market. They account for the greatest proportion of savings in the market. Majority of the consumers still believe that bank deposits are the most favourable long-term savings
4 pages (1000 words) Coursework
Word limit Part B: 1100 words Question 2 Table 2 below shows five alternative ways to invest a 100,000 lump sum. Explain how each of the investments might be exposed to the three high-level risks: capital risk, income risk and liquidity risk. Discuss ho
nt value method is a financial tool that permits the future cash flows to be discounted over their time periods and brought to their present value (Damodaran, 2002). Two of the reasons for an investor should be interested in the present value method are: The three investment
5 pages (1250 words) Coursework
Socially Responsible Investing
For the purposeof this essay, the researcher has used the Capital Asset Pricing Model (CAPM) and Jensen’s alpha model on 40 listed companies in which 20 companies represented socially responsible investment funds whereas the remaining 20 reflected the performance of the conventional investment funds.
42 pages (10500 words) Coursework
ECON337 4
Therefore, while some of its industries were being scrapped more were being developed concurrently creating more opportunities and additional revenue for the country (Paul & Hart, p.110). The industries that were promoted in Japan after the World War II are
6 pages (1500 words) Coursework
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation