Feb 26, 2013 | by Franck Cushner, CFP®
Throughout the years, the U.S. Treasury has issued various types of debt, all used to raise capital for public service needs. Liberty Bonds were first issued in April 1917, to help support the allied cause during World War I. Not only did the bonds raise capital, they also promoted a symbol of patriotic duty throughout the United States. The Liberty Bonds also introduced the concept of financial securities to many citizens for the first time.
In total, there were four issues of Liberty Bonds:
April 1917 3.5%
Oct 1917 4%
April 1918 4.5%
Sept 1918 4.25%
First Liberty Bond Act
The 1st Liberty Loan Act established a $5 billion aggregate limit on the amount of government bonds issued at 30 years at 3.5% interest, redeemable after 15 years. It raised $2 Billion with 5.5 million people purchasing bonds.
Second Liberty Bond Act
The 2nd Liberty Loan Act established a $15 billion aggregate limit on the amount of government bonds issued, allowing $3 billion more offered at 25 years at 4% interest, redeemable after 10 years. The amount of the loan totaled $3.8 Billion with 9.4 million people purchasing bonds.
Source: Library of Congress
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