War bonds were issued by the government of United States as a form of debit securities during the World War II. The citizens could borrow money to the government to finance military needs or acts and defence. The government appealed to the United States citizens to buy the war bonds using the American patriotic spirit in his campaigns.
War bonds are a financial instrument used by states to finance military operations during a period of war. Like any other type of bond, interest accrues and the State amortizes the debt (that is, the State acquires a debt with an individual or an institution and has to return the borrowed money to the creditor and pay the corresponding interest). These bonds are also subject to classification by independent organizations that evaluate the security of the bond.
They can be guaranteed or not, and have a duration of short, medium or long term. Even if the bonds are guaranteed, if the issuing government is in bad shape after the war, the creditor runs the risk of losing the money invested.
