Treasury bond (T-bond),
Definition of Treasury bond (T-bond):
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.
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.
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.
An interest-bearing bond issued by the US Treasury.
How to use Treasury bond (T-bond) in a sentence?
- For example, if you pay $1, 000 for a Treasury bond with a $50 interest payment, its yield is 5%.
- T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.
- Along with Treasury bills, Treasury notes, and Treasury Inflation-Protected Securities (TIPS), Treasury bonds are one of four virtually risk-free government-issued securities.
- 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.
- Treasury bonds (T-bonds) are fixed-rate U.S. government debt securities with a maturity range between 10 and 30 years.
- The treasury bond was not a good thing because the interest rat was over ten years and that was a very long time.
- 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