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Definition
Baby Bonds
A name given to the Series A-1935 savings bond, but carried over to Series B-1936, C-1937 & 1938, and D-1939, 1940, & 1941 (through April) savings bonds.
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95 billion worth of "baby bonds," as they were called, in denominations ranging from twenty-five dollars to a thousand dollars.
Baby bonds allow small investors to invest in bonds and give smaller corporations a chance to sell bonds. The small issue size means that large institutional investors typically ignore this debt issue.
The treasury first offered the predecessor to savings bonds, called "baby bonds", in March, 1935. The bonds were issued in denominations from $25 to $1,000. They were sold at 75 percent of face value, and accrued interest at the rate of 2.
 See also: Baby bond, Bonds, Liquidity, Issue, Investment
  
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