How much would four $90 dollar bonds from 1991 be worth today?

Question

I have just learned that I have gotten four $90.00 bonds from 1991. How much are they worth now? I have no idea how they work.

Answer 1

Bonds are equity instruments. Your $90 bonds would have been purchased for $90 each in 1991 in return for usually annual coupon payments at a pre-determined rate (e.g if it was 10%, you would receive $9 per annum). If it is non-redeemable, you will receive this coupon payment indefinitely. If it is redeemable, you will receive $90 per bond on the redemption date in addition to the coupon payments in the intervening years.

You need more information about your bonds to value them.

Are they redeemable? What are the coupon payments and how regular are they?

If it is redeemable, you need to find the present value of all coupon payments up to the redeeming date, then add this to the present value of the $90 you will receive on redemption.

If the bonds are non-redeemable, then it is simple as:

Coupon payment/current market rate for similar bonds

Of course you will use the link provided in the previous answer, but this is the method behind the valuation of bonds.

Hope this helps.

Answer 2

go to savingsbonds.gov  they have a bond calculator, which will tell u how much they are worth.