securities

TREASURY BONDS EXPLAINED

Issued by the United States Government directly to the investor, Treasury Bonds are traditionally regarded as on of the safest investments for U.S investors, they are available as bills, notes & bonds. T-bills have a short maturity span of between 4 weeks and one year, no interest is paid on this type of bond but they are sold at a discount to guarantee a return profit. T-notes maturity period of between two and ten years and have a coupon (interest payment) issues every half year. T-bonds are long term bonds which reach maturity in ten to thirty years and have the bi-yearly coupon issued. There is a busy secondary market there treasury bonds are traded prior to maturity which makes it easy to liquidate a bond at any time should the capital be required.