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<p>[QUOTE=&quot;medoraman, post: 1308229, member: 26302&quot;]The only variability is in the interest rate portion of the bond. Nothing changes as far as the Treasury is concerned, they got $1000, they will return $1000, and every six months pay out interest on its face. What you are seeing on statements is including accrued interest due. If you have a bond and it will pay its 6 months interest next week, you don&#039;t want to sell it for $1000, but $1000 and most of that interest payment. Take away interest from bonds and they would trade every single day for $1000, every single one of them. Just like a $100 bill right? It never goes down to $99 or up to $101, this is because they do not pay interest. Again, if you think of the $100 bill as the $100 interest free bond issued by the Fed, (that it truly is), then it makes it easier to understand the entire system in place. Its the interest on treasuries that changes them from $1000 day in day out. No interest means no registration, and then you simply created the $1000 bill.[/QUOTE]</p><p><br /></p>

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