§ 13287 Bond Refunding Exchange Rules

• •The government can swap old bonds for new ones instead of selling new bonds to pay off the old ones.
• •The new bonds must be worth at least the same as the old ones, plus any interest that has built up.
• •This is like trading in an old toy for a new one, but the new one has to be just as good or better.

Imagine you have an old savings bond from your grandma worth $100, and it has earned $10 in interest.

The government can give you a new bond worth at least $110 instead of paying you cash for the old one.