National debt is a kind of government bond issued by the central government to raise financial funds. It is a debt certificate issued by the central government to investors, promising to pay interest and repay the principal within a certain period of time. In the United States, bonds rated as the highest credit rating (AAA) by authoritative credit rating agencies are also called "Phnom Penh bonds". Later, the term "Phnom Penh bond" generally refers to all bonds issued by the central government, that is, national debt.
National debt is the main form of national credit. The central government often issues treasury bonds to make up the national fiscal deficit, or to raise funds for some expensive construction projects, some special economic policies and even wars. Because the national debt is guaranteed by the tax revenue of the central government. So the risk is small, the liquidity is strong, and the interest rate is lower than other bonds.
From the form of bonds, bonds issued in China can be divided into voucher bonds, bearer bonds and book-entry bonds.
Voucher-type treasury bonds are a kind of national savings bonds, which can be registered to report the loss. The creditor's rights are recorded as "voucher-type treasury bonds receipt vouchers", which cannot be listed and circulated, and interest will accrue from the date of purchase. During the holding period, if the holder needs to redeem cash under special circumstances, he can redeem it in advance at the purchase outlet. When redeeming in advance, in addition to repaying the principal, the interest is calculated according to the actual holding days and the corresponding interest rate grade, and the handling agency collects the handling fee in accordance with the relevant provisions on repaying the principal.
Bearer (physical) treasury bonds are a kind of physical bonds, which record creditor's rights in the form of physical certificates, have different face values, are bearer, have no loss report, and can be listed and circulated. During the issuance period, investors can buy directly at the counter of the institution that sells government bonds. Investors who set up accounts in stock exchanges may entrust securities companies to purchase through the trading system. After the issuance period is over, the holders of physical coupons can sell them at the counter, or they can sell them through the trading system after being entrusted to the stock exchange for custody.
Book-entry treasury bonds record creditor's rights in the form of accounting, issuance and trading through the trading system of the stock exchange, and can be registered for loss reporting. Investors who buy and sell book-entry securities must set up accounts in the stock exchange. Because the issuance and transaction of book-entry treasury bonds are paperless, it has high efficiency, low cost and safe transaction.
There are two kinds of national debt, one is voucher national debt, which cannot be traded. Investors must hold the coupon rate until it expires after purchase. Otherwise, if the interest on early redemption is very low, they will have to pay a handling fee of 0. 1% of the bank principal. The second is book-entry treasury bonds, which can be traded. Like stocks, prices fluctuate up and down. Two kinds of government bonds can be bought or traded in banks or securities companies. Certificate-based government bonds can only be bought in banks, and they are rarely available when issued.
On the risk of national debt;
Ordinary investors are mainly concerned about the interest rate of government bonds. The interest rate of national debt is similar to that of banks, which is based on the bank interest rate, but the interest rate of each period is slightly different. It depends on which issue you buy. Minimum purchase of national debt 1000 yuan; National debt is exempt from interest tax; The risk of national debt is low. For example, the interest rate of the national debt you bought this year is 4%, but because of rising prices, the bank will raise interest rates next year and the deposit interest rate will be raised to 5%. Obviously, it is more cost-effective to deposit in the bank, which is the interest rate risk of buying government bonds. If you don't care about 1%, there is no risk, because just like depositing in a bank, the state will pay you back as much as you buy in a few years, which is the same. There is also a book-entry treasury bond listed and traded, and the price fluctuates up and down. If you buy 100 yuan/piece, the price drops to 99 yuan/piece because of market fluctuation. If you sell it, each piece will lose 1 yuan, which will become your loss, but don't worry, the country will still redeem it at face value 100 yuan after the national debt expires; If the price rises to 1, 0 1 yuan/piece, RMB will be earned from the sale, otherwise the country where the national debt expires will still redeem it at the face value of 1 ,000 yuan.