An “I Bond” typically refers to a type of savings bond issued by the United States Treasury Department. These bonds are purchased at face value, meaning you pay the full amount of the bond’s denomination (in this case, $5,000) when you buy it.

The purchase price of an I Bond is the face value of the bond. Therefore, a $5,000 I Bond would cost $5,000 to purchase.

“I Bonds” accrue interest over time based on a fixed rate plus an inflation rate, making them an attractive option for long-term savings. Note that the interest earned on I Bonds is subject to federal income tax, but it is exempt from state and local taxes. Also, there are certain rules and restrictions regarding when I Bonds can be redeemed without penalty, so it’s necessary to familiarize yourself with the terms and conditions before investing.