ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In bond investing, face value (par value) is the amount paid to a bondholder at the maturity date, as long as the bond issuer doesn’t default. However, bonds sold on the secondary market fluctuate with interest rates.

Detailed explanation-2: -When you buy a U.S. savings bond, you lend money to the U.S. government. In turn, the government agrees to pay that much money back later-plus additional money (interest).

Detailed explanation-3: -Electronic Series EE Bonds are sold at face value and are worth their full value when available for redemption. The minimum term of ownership is one year, but a penalty is imposed if the bond is redeemed in the first five years. The bonds earn interest for 30 years.

Detailed explanation-4: -$10, 000 in electronic EE bonds. $10, 000 in electronic I bonds, and. $5, 000 in paper I bonds (with your tax refund)