Business: National Rural Utilities Cooperative Finance Corp., 5.50% Subordinated Notes due 5/15/2064, issued in $25 denominations, redeemable at the issuer's option on or after 5/15/2024 at $25 per share plus accrued and unpaid interest, maturing 5/15/2064. <p> The Company may redeem the Notes before 5/15/2024 at $25 of their principal amount plus accrued and unpaid interest, upon changes in tax laws; before 5/15/2024 at 102% of their principal amount plus accrued and unpaid interest upon a rating agency event. The Company may redeem the Notes in whole or in part before 5/15/2024 at a redemption price which is greater of 1. $25 of the principal amount of the notes being redeemed, 2. the sum of the present values of the remaining scheduled payments of principal and interest of the notes being redeemed (see prospectus for more details). <p> Interest distributions of 5.50% per annum ($1.375 per annum or $0.34375 per quarter) will be paid quarterly on 2/15, 5/15, 8/15 & 11/15 to holders of record on the record date that will be 2/1, 5/1, 8/1 & 11/1 respectively (NOTE: the ex-dividend date is at least one business day prior to the record date). <p> Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. <p> The company has the right, at any time, to defer interest payments for up to 40 consecutive quarters (but not beyond the maturity date). During any such extension period, interest will continue to accrue on the Notes at 5.50% and accrued interest on the Notes will bear additional interest at 5.50%, compounded on each interest payment date. <p> Notes are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. <p> This security was rated as A3 by Moody’s and BBB+ by S&P at the date of its IPO. The Notes are unsecured and subordinated obligations of the company and will rank junior with all existing and future unsecured and unsubordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.