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US Series HH Savings Bond Formula:
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The US Series HH Savings Bond formula calculates the current value of HH bonds based on purchase amount, annual interest rate, and years held. These bonds were issued by the US Treasury and paid interest semi-annually until they stopped issuance in 2004.
The calculator uses the US Series HH savings bond formula:
Where:
Explanation: The formula accounts for semi-annual compounding, where interest is applied twice per year, leading to more accurate growth calculations for HH bonds.
Details: Accurate bond valuation is crucial for financial planning, investment analysis, and understanding the growth of government-backed savings instruments over time.
Tips: Enter purchase amount in USD, annual interest rate as a decimal (e.g., 0.05 for 5%), and years held. All values must be valid (purchase amount > 0, rate ≥ 0, years ≥ 0).
Q1: What were US Series HH Savings Bonds?
A: HH bonds were current income securities issued by the US Treasury from 1980-2004 that paid interest semi-annually for 20 years.
Q2: Are HH bonds still earning interest?
A: Most HH bonds reached final maturity in 2020 and no longer earn interest. This calculator is for historical reference and financial education.
Q3: Why is the interest rate divided by 2 in the formula?
A: Because HH bonds paid interest semi-annually, so the annual rate is divided by 2 for each compounding period.
Q4: What was the typical interest rate for HH bonds?
A: Rates varied over time, but typically ranged from 4-8% depending on when they were issued and market conditions.
Q5: Can this calculator be used for other bond types?
A: This specific formula is designed for HH bonds. Other bond types like EE bonds or I bonds have different calculation methods.