Treasury Bond Facts:
- Also called T-bonds
- Longer term investment (term is greater than 10 years)
- Price and interest rate are set at an auction (generally, the public sale of something to the person who bids the most money)
- Can be bought directly from the U.S. Treasury, or through banks and brokers
When you buy a T-bond, you may pay less, the same or more than it will be worth at the end of its term. The bonds have a set interest rate (also known as a fixed rate). You receive interest from the Government every six months. When you reach the end of the bond’s term, the Government pays you the full total value or "face value" of the bond. You can hold the bond until it reaches its full value or sell it before the end of its term.