Series I savings bond purchase

thomas_in_acf
thomas_in_acf Member ✭✭
edited June 2022 in Investing (Windows)
I've read here about how to enter savings bond purchases, but I'm still not sure I get it. I got a Series I savings bond for $2,000. Does this then mean that I record the number of shares as 100 and the price paid as $20?

Comments

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited May 2022

    If you haven't already, you may want to review: https://help.quicken.com/pages/viewpage.action?pageId=3216621

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited May 2022
    If you're using the Bonds Bought action and assuming you bought one bond then you'd enter "1" bonds at a price of 200:
    If you actually bought two bonds then you'd enter "2" and 100.
  • thomas_in_acf
    thomas_in_acf Member ✭✭
    Thanks, guys. I guess what threw me off is the base 100 thing (that and the fact that, initially, I set this up as a stock purchase instead of a bond purchase). Anyway, I'm still unclear on why they use base 100 in the first place.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited May 2022
    Thanks, guys. I guess what threw me off is the base 100 thing (that and the fact that, initially, I set this up as a stock purchase instead of a bond purchase). Anyway, I'm still unclear on why they use base 100 in the first place.
    The base 100 thing has to do with the way bonds are typically traded.  A bond quote is presented as a percentage of the par value.  The par value is usually set at 100 to represent 100% of the bond's face value.  For example, a quote of 99 would mean 99% of the face value.  If a bond has a face value of $100 and a quote of 99, the bond will costs $99.  If a bond has a face value of $1000 and a quote 99, the bond costs $990...  So, by dividing the the face value of the bond by the par value (usually, 100), we get a share count that may be multiplied a bond quote to produce a value similar to other types of securities.
  • thomas_in_acf
    thomas_in_acf Member ✭✭
    Hey, thanks so much. This really helps.
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