Page images
PDF
EPUB

(b) Federal income tax on bonds. An owner of Series E bonds who is a cash basis taxpayer may use either of two methods for reporting the increase in the redemption value of the bonds for Federal income tax purposes, as follows:

(1) Defer reporting of the increase to the year of final maturity, actual redemption, or other disposition, whichever is earlier; or

(2) Elect to report the increases each year as they accrue, in which case the election will apply to all Series E bonds then owned by him and to those thereafter acquired, as well as to any other similar obligations sold on a discount basis.

If method (1) is used, the taxpayer may change to method (2) without obtaining permission from the Internal Revenue Service. However, once the election to use method (2) is made, the taxpayer may not change the method of reporting unless he obtains permission to do so from the Internal Revenue Service. Inquiries concerning further information on Federal taxes should be addressed to the District Director, Internal Revenue Service, of the taxpayer's district, or the Internal Revenue Service, Washington, D.C. 20224.

[35 F.R. 702, Jan. 17, 1970, as amended at 36 F.R. 9866, May 29, 1971]

§ 316.10 Payment or redemption.

(a) General. A Series E bond may be redeemed in accordance with its terms at the appropriate redemption value as shown in the applicable tables hereof for bonds bearing various issue dates back to May 1, 1941. The redemption values of bonds in the denomination of $100,0001 (which was authorized as of January 1, 1954) are not shown in the tables. However, the redemption values of bonds in that denomination will be equal to the total redemption values of ten $10,000 bonds bearing the same issue dates. A Series E bond in a denomination higher than $25 (face amount) may be redeemed in part but only in the amount of an authorized denomination or multiple thereof.

(b) Federal Reserve Banks and Branches and Treasurer of the United States. Owners of Series E bonds may

1 The $10,000 and $100,000 denominations are available only for purchase by trustees of employees' savings and savings and vacation plans (see sec. 316.5(b)).

obtain payment upon presentation and surrender of the bonds to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Securities Division, Washington, D.C. 20220, with the requests for payment on the bonds duly executed and certified in accordance with the governing regulations.

(c) Incorporated banks, trust companies and other financial institutions. An individual (natural person) whose name is inscribed on a Series E bond either as owner or coowner in his own right may also present such bond to any incorporated bank or trust company or other financial institution which is qualified as a paying agent under Department Circular No. 750, current revision (Part 321 of this subchapter). If such bond is in order for payment by the paying agent, the owner or coowner, upon establishing his identity to the satisfaction of the agent and upon signing the request for payment and adding his home or business address, may receive immediate payment of the current redemption value.

[blocks in formation]

TABLES OF REDEMPTION VALUES AND INVESTMENT YIELDS FOR U.S. SAVINGS BONDS OF SERIES E

Each table shows: (1) The redemption value for each successive half-year term of holding during the current maturity period and the authorized redemption values during
any subsequent maturity period, on bonds bearing issue dates covered by the table; (2) for each maturity period shown, the approximate investment yield on the redemption
value at the beginning of such maturity period to the beginning of each half-year period thereafter; (3) the approximate investment yield on the current redemption value from
the beginning of each half-year period to the beginning of the next half-year period; and (4) the approximate investment yield on the current redemption value from the begin-
ning of each half-year period to next maturity. Yields are expressed In terms of rate percent per annum, compounded semiannually.

[blocks in formation]

$375.00

$18.75 $37.50 $56.25 $75.00 $150.00
$750.00 $7,500
25.00 50.00 75.00 100.00 200.00 500.00 1,000.00 1 10,000

Period after issue date

(1) Redemption values during each half-year period 2 (values increase
on first day of period shown)

[blocks in formation]

Issue price..
Denomination.

Percent

Percent

First 1⁄2 year

1⁄2 to 1 year...
1 to 11⁄2 years..
11⁄2 to 2 years.
2 to 21⁄2 years.
22 to 3 years....
3 to 31⁄2 years.
32 to 4 years..

4 to 41⁄2 years.

$18.75 $37.50 $56.25

$75.00

$150.00

$375.00

$750.00

$7,500

0.00

3. 20

5. 50

[blocks in formation]

42 to 5 years..

23. 16

46. 32

69.48

92. 64

185. 28

463. 20

926. 40

9, 264

4.75

5.70

8. 05

5 to 51⁄2 years.

23.82

47.64

71. 46

95. 28

190, 56

476.40

952.80

9, 528

4. 84

5. 79

9.47

51⁄2 years to 5 years and 10 months..

24. 51

49. 02

73.53

98.04

196. 08

490, 20

980, 40

9, 804

4.93

15. 12

15. 12

MATURITY VALUE (5 years and 10

months from issue date).

25.73

51.46

77.19

102.92

205.84

514.60

1,029.20

10,292

5.50

1 Available only to trustees of employees' savings and savings and vacation plans.

24-month period in the case of the 52-year to 5-year and 10-month period.

[blocks in formation]

Redemption values and investment yields to second extended maturity on basis of June 1, 1970, revision

[blocks in formation]

1 Month, day, and year on which issues of May 1, 1941, enter each period. half-year period. 2 Based on second extended maturity value in effect on the beginning date of the

Yield on purchase price from issue date to second extended maturity date is 3.32 percent.

[blocks in formation]

First 1⁄2 year.

1⁄2 to 1 year.
1 to 11⁄2 years..
11⁄2 to 2 years.
2 to 21⁄2 years.

21⁄2 to years.. 3 to 31⁄2 years..

1 (5/1/71)

$50.28

$100.56

$201. 12

$1,005. 69

$2,011. 20

0.00

5.49

5.50

-(11/1/71)

51.66

103. 32

206. 64

1,033. 20

2,066. 40

5. 49

5.50

5.50

(5/1/72)

53.08

106. 16

212. 32

1,061. 60

2, 123. 20

5. 49

5.50

5.50

.(11/1/72)

54.54

109. 08

218. 16

1,090. 80

2, 181. 60

5.50

5.50

5.50

(5/1/73)

56. 04

112.08

224. 16

1, 120. 80

2,241, 60

5.50

5.50

5.50

(11/1/73)

57.58

115. 16

230. 32

1, 151. 60

2, 303. 20

5. 50

5.52

5.50

[blocks in formation]

1 Month, day, and year on which issues of May 1, 1941, enter each period.

2 Based on third extended maturity value in effect on the beginning date of the half-year period.

[36 F.R. 9867, May 29, 1971; 36 F.R. 10949, June 5, 1971]

3 Yield on purchase price from issue date to third extended maturity date is 3.86 percent.

Issue price..
Denomination.

TABLE 3

BONDS BEARING ISSUE DATES FROM JUNE 1 THROUGH NOVEMBER 1, 1941

Period after first extended maturity (beginning 20 years after issue date)

[blocks in formation]

First 1⁄2 year.

1⁄2 to 1 year.
1 to 11⁄2 years.
11⁄2 to 2 years.

1 (6/1/61)

$33.73

$67.46

$134.92

$674. 60

$1,349. 20

0.00

3.74

3.75

-(12/1/61)

34.36

68.72

137.44

687. 20

1, 374. 40

3.74

3.78

3.75

(6/1/62)

35. 01

70.02

140. 04

700. 20

1, 400. 40

3.76

3.71

3.75

(12/1/62)

35.66

71. 32

142.64

713. 20

1, 426. 40

3.74

3.76

3.75

2 to 21⁄2 years..

(6/1/63)

36. 33

72.66

145. 32

726. 60

1,453. 20

3.75

3.74

3.75

22 to 3 years.

(12/1/63)

37.01

74. 02

148. 04

740. 20

1,480. 40

3.75

3.78

3.75

3 to 31⁄2 years..

(6/1/64)

37.71

75.42

150. 84

754. 20

1,508. 40

3.75

3.71

3.75

32 to 4 years..

(12/1/64)

38.41

76.82

153. 64

768. 20

1, 536. 40

3.75

3.75

3.75

4 to 41⁄2 years.

(6/1/65)

39. 13

78.26

156. 52

782.60

1, 565. 20

3.75

3.78

3.75

42 to 5 years.

(12/1/65)

39.87

79.74

159.48

797.40

1,594. 80

3.75

3.81

4. 15

5 to 51⁄2 years.

(6/1/66)

40.63

81.26

162. 52

812. 60

1, 625. 20

3.76

3.84

4.19

51⁄2 to 6 years..

(12/1/66)

41. 41

82.82

165. 64

828.20

1, 656. 40

3.76

3.91

4. 22

6 to 61⁄2 years.

(6/1/67)

42.22

84. 44

168.88

844.40

1,688. 80

3.78

3.98

4. 26

61⁄2 to 7 years..

(12/1/67)

43.06

86. 12

172. 24

861. 20

1, 722. 40

3.79

4. 13

4.30

7 to 71⁄2 years.

(6/1/68)

43.95

87.90

175.80

879.00

1,758. 00

3.82

4. 14

4. 43

72 to 8 years. 8 to 81⁄2 years. 81⁄2 to 9 years.. 9 to 91⁄2 years.

(12/1/68)

44. 86

89.72

179.44

897.20

1,794. 40

3.84

4. 19

4.49

(6/1/69)

45.80

91.60

183. 20

916. 00

1,832.00

3.86

4.45

5.00

(12/1/69)

46. 82

93. 64

187.28

936. 40

1,872. 80

3.90

4. 66

5.18

(6/1/70)

47.91

95.82

191. 64

958. 20

1, 916. 40

3.94

5.51

5. 94

Redemption values and investment yields to second extended maturity on basis of June 1, 1970, revision

[blocks in formation]

1 Month, day, and year on which issues of June 1, 1941, enter each period. For subsequent issue months add the appropriate number of months.

Yield on purchase price from issue date to second extended maturity date is 3.35 percent.

? Based on second extended maturity value in effect on the beginning date of the half-year period.

« PreviousContinue »