Second Liberty Loan Converted 4 1/4% Gold Bond of 1927-1942 - $100 2nd Liberty Loan Bond - 1918 dated U.S. Treasury Bond
Inv# TB1038 Bond
Second Liberty Loan Converted 4 1/4% Gold Bond of 1927-1942. A liberty bond, also known as a liberty loan, was a type of war bond issued in the United States to aid the Allied forces during World War I. Purchasing these bonds became a representation of patriotic responsibility for many Americans and introduced the concept of financial securities to a significant portion of the population for the first time. The 2nd Liberty Loan Act set a total cap of $15 billion on government bonds, permitting an additional $3 billion to be offered at a 25-year term with a 4% interest rate, redeemable after 10 years. Ultimately, the loan amounted to $3.8 billion, with 9.4 million individuals acquiring bonds.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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