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U.K. to Pay Off World War I Bonds

Thousands of investors have them.

Chancellor of the Exchequer George Osborne announced Wednesday that the United Kingdom will pay off the remainder of its debt from World War I. The outstanding debt of nearly $3 billion from a 3.5 percent loan will be repaid on March 9, 2015. More than 120,000 investors hold War Loan bonds. The bonds were issued by Chancellor Neville Chamberlain in 1932. It replaced a bond that paid at a rate of 5 percent to investors. This repayment is the first time the U.K. government has paid off a bond such as this in 67 years. According to the government, the country has paid nearly $9 billion in total interest on the 5 percent and 3.5 percent bonds. The government is also now looking to pay off other bonds, including some debt issued in the 1700s.