A fifth and final issue, termed the Victory Liberty Loan or Victory Loan, was issued in May to consolidate short-term debt issued during the war. The promised rate of interest on the first Liberty Bond issue, 3.
Instead of allowing the bonds to sell below par, the government put on a massive bond sales campaign replete with celebrity endorsements, air shows, sensationalistic posters like one showing Manhattan ablaze and German bombers overhead , window stickers and buttons. Those tactics, plus larger interest payments and liberalized tax exemptions, increased demand for subsequent issues. This made them more affordable for retail investors. Another feature of the bonds was that they were nontransferable—only the bond purchaser could redeem the bonds in the future.
War bonds originally had a year maturity, which resulted in a 2. Congress extended the interest that could be earned so that bonds sold from to accrued interest for 40 years. Bonds issued after accrued interest for 20 years. The U. Motives to purchase war bonds were embedded in patriotism and conscience, given that these bonds offered a rate of return that was below the prevailing interest rates in the market.
Advertisements for the bonds were carried out through multiple media such as radio stations, newspapers, magazines, and newsreels in theaters to reach the American people. Hollywood stars like Bette Davis and Rita Hayworth helped promote war bonds by touring the country.
People could save up for War Bonds by contributing 25 cents each time. The Girl Scouts also sold stamps valued at 10 cents each. Norman Rockwell created several paintings as part of the advertising effort for War Bonds.
As with any security, War Bonds carried the risk of a loss if sold before maturity for a lower price than the purchase price. Although War Bonds are not sold any longer, as an example, let's assume an investor purchased a war bond and held it until its maturity in 10 years.
The investor holds the bond for 10 years and is paid no-interest payments over those 10 years. Fixed Income Essentials. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance.
Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Why do you think this Stamp Book was never completed? Do you save your money? Why or why not? Treasury sponsored a number of different War Bond drives. Here is a brochure for the 4th War Loan from By this time, most Americans had already bought War Bonds, but the war was far from over.
What techniques does it use to encourage Americans to buy more bonds? Why do you think they chose that image? What famous people—real or fictional—have you seen campaigning for a cause? What causes or charities do you support with your money or your time?
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