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Accrued Discount

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The accrued discount refers to interest that accumulates on savings bonds from the date of purchase until the date of redemption or final maturity, whichever comes first. Series A, B, C, D, E, EE, F, I and J are discount or accrual bonds -- meaning principal and interest are paid when the bonds are redeemed. Series G, H, HH and K are income bonds, and the semiannual interest paid to their holders is not included in the accrued discount.

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