What are war bonds?

War bonds (sometimes referred to as victory bonds, particularly in propaganda) are debt securities issued by a government to finance military operations and other expenditure in times of war without raising taxes to an unpopular level.

What are the different types of war bonds?

Different types of war bonds, such as fixed-rate, inflation-indexed, and zero- coupon bonds, offer various benefits and risks to investors. Valuation of war bonds takes into account factors like interest rates, credit risk, and time to maturity, using pricing models and yield curve analysis.

How were war bonds used in WW1?

In the U.S., the sale of war bonds was overseen by the War Finance Committee. War bonds were initially known as Defense Bonds and were first issued as Liberty Bonds in 1917 to finance the United States government's participation in World War I. Through the sale of these bonds, the government raised $21.5 billion dollars for its war efforts.