This is because one needs to invest less money to buy a bond that generates the what is the maturity date of savings bonds same amount of income.
A common type of long-term bond is a 30-year.S.Thus, investors should inquire, before buying any fixed-income securities, whether the bond is callable or not.They are sold at a discount off of the value at maturity, and are guaranteed to be redeemed for that value if held until maturity.This means that bonds are valued more for the income they produce than for their underlying value at maturity.So if you buy marketable bonds in a low interest rate environment, where interest rates are likely to increase, stick mainly to short-term bonds.To illustrate, consider the situation of an investor who in 1986 bought a 30-year Treasury bond with a maturity date of May 26, 2016.This is especially true of longer-term bonds.Savings Bonds, advertisement, uS Savings Bonds offer a low-risk and modest return investment for saving for your children's college education.
Advertisement, education Bond Program, the Education Bond Program makes the interest on certain savings bonds tax free when the bonds are redeemed to pay qualified higher education expenses or to roll over into a section 529 plan.
Series EE Savings Bonds and Series I Savings Bonds offer special tax benefits when used for qualified education expenses.
(Grandparents who own education bonds can only claim an interest exclusion for their children or grandchildren if the child or grandchild is a dependent listed as an exemption on the grandparents' income tax return.) Parents who are married must file a joint income tax return.Savings bonds are registered with the US Treasury Department, and can be replaced at no cost if lost, stolen or destroyed.Series HH bonds are not eligible.Strips are not issued or sold directly to investors.The child cannot be listed as a co-owner, but may be listed as a beneficiary.Qualified expenses are reduced by the amount of any financial aid received in the same tax year, including the amount of other education tax breaks (Hope Scholarship, Lifetime Learning Credit, scholarships, Coverdell withdrawals, section 529 plan withdrawals, etc.).(On the other hand, if interest rates are likely to drop, you can maximize your benefit by buying longer-term bonds.).But most people who buy marketable bonds don't hold onto the bonds until maturity, but buy and sell them on the open market.For More Information, for more information about using savings bonds as a college savings vehicle, please see the US Treasury's.What is 'Maturity Date the maturity date is the date on which the principal amount of a note, draft, acceptance bond or another debt instrument becomes due and is repaid to the investor and interest payments stop.
A 30-year Treasury bond, at its time of issue, offers interest payments for 30 years (every six months in the case of a Treasury Bond) and, in 30 years, the principal it loaned out.
This is for a couple of reasons.
This classification system is used widely in the finance industry.
Say an investor bought a bond issued at 100 with a maturity date of April 1, 2025.