Verbull Word of the day
Finance glossary

Treasury Bond

Fixed Income · beginner
Definition

Long-term U.S. government debt with maturities up to thirty years.

Treasury bonds are the longest-dated U.S. government securities, paying semiannual interest over twenty to thirty years. Backed by the full faith and credit of the government, they are considered free of default risk but highly sensitive to interest rate changes.

In a sentence

He locked in a 30-year Treasury bond, accepting price swings for decades of guaranteed interest.

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