B3370, China Reconstruction Bond, China Farmers Bank 5 Dollars, 1942

B3370, China Reconstruction Bond, China Farmers Bank 5 Dollars, 1942.

Fine condition, please refer the picture, circulated.

Issued in 1942 by China Farmer’s Bank. The face value is 5 China Dollars.

It is a kind of government bond, but it can be circulated in the market as legal banknotes. It is the emergency notes issued during the war, to solve the fiscal problems, without leading to inflation.

The interest rate is different from different duration.

Duration half year: 6% annum.
Duration 1 year: 7.1% annum.
Duration 2 years: 7.95% annum.
Duration 3 years: 9.98% annum.