LOUISIANA STATE BOND COMMISSION 2025

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These small $5 bonds were issued by the State of Louisiana in the United States in the late 1870s in a desperate bid to raise money for education. They are known as Baby Bonds because they feature a small child in a fancy bonnet on the front. Interest was for 7 cents per year. The $5 was redeemable in 1886.
Bonds are typically traded by a network of dealers, but some bonds called $25 par bonds or baby bonds trade on exchanges just like stocks. They have smaller denominations, usually an initial investment of $25 instead of the $1,000 or $5,000 of traditional bonds.
Current baby bond programs typically allow young adults to use the money only to pursue education, buy a home, or start a business.
A form of remuneration received by a broker, dealer or dealer bank purchasing or selling Bonds when acting as agent for a customer. The Commission is typically a charge to the customer of a set fee per Bond.
Lower returns: The stability of baby bonds often comes with modest yields, which may not keep pace with inflation or meet the growth needs of aggressive investors. Interest rate risk: As fixed-income securities, baby bonds are sensitive to interest rate fluctuations, potentially losing value when rates rise.
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Baby bonds are structured similarly to other fixed-income securities, and are generally publically traded on exchanges like NYSE or NASDAQ. They have a predetermined face value, coupon rate, and maturity date. The face value represents the principal amount that will be repaid to the investor upon bond maturity.

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