Liberty Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 779

Definition: Liberty Bond

Liberty bonds were issued by U.S. Government to raise funds and build patriotism in world war I. They were issued in June and October 1917 along with in May and October 1918.

These bonds offered low interest rates of 3.5% on first issue, the first issue was not completely sold so to promote these bonds heavy campaigns were launched like celebrity endorsing posters, air shows and window stickers. Along with symbol of patriotism, these bonds introduced an idea of financial securities to individuals. These bonds helped to support the military.

The total amount of money raised using the liberty bonds was around $23 billion. U.S. Government used the same bonds to raise funds after the September 2001 terrorist attack in U.S. for the rebuilding efforts required after the disaster.


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