What are reopenings, premiums, and accrued interest?
In a reopening, we auction additional amounts of a previously issued security. Reopened securities have the same maturity date and interest rate as the original securities, but a different issue date and usually a different price. When you buy a reopened security, you have to pay a premium if the price of the security at reopening is greater than the face value of the security. The price of the reopened security will be determined at auction. Because the security is being auctioned at two separate times, market conditions probably won’t be the same and, therefore, the prices likely won’t be the same either. Also, when you buy a reopened security, regardless of its price, you may have to pay accrued interest–interest the security earns from the original issue date of the security until the date we issue the security to you. However, we pay the accrued interest back to you in your first semiannual interest payment. These bonds are reopenings: the ones we auction in January, March, April
