A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens to lend the government money.
What are retail war bonds?
Retail war bonds, like other retail bonds, tend to have a yield which is below that offered by the market and are often made available in a wide range of denominations to make them affordable for all citizens. Governments throughout history have needed to borrow money to fight wars.
How did war bonds work?
The United States Treasury offered Americans a series of War Bonds they could purchase during the war. A War Bond was both an investment in one’s country and an investment in one’s own financial future. Here’s how it worked: You could purchase a $25 War Bond for $18.75.
