Treasury bond (T-bond)

Treasury bond (T-bond),

Definition of Treasury bond (T-bond):

  1. Treasury bonds (T-bonds) are government debt securities issued by the U.S. Federal government that have maturities greater than 20 years. T-bonds earn periodic interest until maturity, at which point the owner is also paid a par amount equal to the principal.

  2. Long-term (maturity over 10 years) fixed interest rate debt security issued by a national (federal) government backed by its full faith and credit. Next to treasury bills (maturity less than one year), and treasury notes (maturity one to ten years) T-bonds are the safest form of marketable investment. They have an active secondary market, and usually pay semi-annual interest. See also treasuries.

  3. Treasury bonds are part of the larger category of U.S. sovereign debt known collectively as treasuries, which are typically regarded as virtually risk-free since they are backed by the U.S. government's ability to tax its citizens.

  4. An interest-bearing bond issued by the US Treasury.

How to use Treasury bond (T-bond) in a sentence?

  1. For example, if you pay $1, 000 for a Treasury bond with a $50 interest payment, its yield is 5%.
  2. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.
  3. Along with Treasury bills, Treasury notes, and Treasury Inflation-Protected Securities (TIPS), Treasury bonds are one of four virtually risk-free government-issued securities.
  4. I am anxious to cash out my treasury bond for $5,000 when it matures so that I can put a down payment on a new house.
  5. Treasury bonds (T-bonds) are fixed-rate U.S. government debt securities with a maturity range between 10 and 30 years.
  6. The treasury bond was not a good thing because the interest rat was over ten years and that was a very long time.
  7. You may want to consider investing in a treasury bond if you want a good low risk way to earn some interest.

Meaning of Treasury bond (T-bond) & Treasury bond (T-bond) Definition