---
kind: "section"
citation: "31 C.F.R. § 351.16"
title: "31"
number: "351.16"
heading: "What do I need to know about the base denomination for redemption value calculations?"
url: "https://uscodex.org/cfr/31/351.16"
---

# §351.16. What do I need to know about the base denomination for redemption value calculations?


We base all calculations of interest on a unit with a principal amount of $12.50. We use this unit value to determine the value of bonds in higher denominations. The effect of rounding off the value of the $12.50 unit increases at higher denominations. This can work to your slight advantage or disadvantage, depending on whether the value is rounded up or down.


## Notes

### Authority

Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.

### Source

Source: 68 FR 24796, May 8, 2003, unless otherwise noted.