What does "treasure bond called in full" mean?
Answer:
It isn't "treasure bond called in full" -- it is "Treasury Bond called in full."
A bond is just a loan -- a company or government can borrow money from the public. In the US, they usually agree to make an interest payment every six months for a set period of time. At the end of the agreement (the maturity date), they make their last interest payment and pay back the amount they borrowed (principal).
Some bonds have a "call feature" that allows the issuer to "call the bond" -- which just means they pay it off early. They would want to do this is rates went way down -- so they could refinance at a lower rate. If they pay off the whole thing, we say that the bond was called in full.
Treasury Bonds are issued by the US Government through the Treasury Department. These bonds are usually not callable -- however, about 35 years ago the US Government went through a period where they sold 30-year bonds that could be called after 25 years. After about five or six years they stopped doing this. However, one of the Treasury Bonds that had a call provision was to mature in 2011. It had a very high interest rate. It is now callable, and the government realized that it could save a lot of money in interest by calling it and issuing a new one at today's low prices.
If a bond is called then interest stops and they must be cashed in.
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