Notes and bonds carry a stated rate of interest, payable semiannually. Notes mature in 2 to 10 years, while market-based bonds mature in more than 10 years. These securities carry a stated rate of interest, payable semiannually. Treasury adjusts the par value of the security on a daily basis using the index ratio to reflect inflation compensation. Treasury sells special issues, available in certificates of indebtedness and bonds, at par.
Special issues carry a stated interest rate payable semiannually.
Treasury redeems special issues at par plus accrued interest. Certificates of indebtedness mature in 1 year or less. These securities earn interest at the daily Federal Reserve repurchase agreement rate. Section 4335 Reporting Requirements To accurately reflect the public debt, agencies should record principal transactions for Government accounts at par value. Because discount, premium and accrued-interest transactions affect the various funds differently, this chapter explains these transactions by fund type.