Treasury Bond
Definition
A US government debt security with a maturity of 10-30 years. Treasuries are considered the safest investments in the world since they are backed by the full faith and credit of the US government. They pay semi-annual interest.
Related Terms
Bond
A fixed-income debt instrument where an investor loans money to an entity (government or corporation) for a defined period at a fixed or variable interest rate. Bonds pay regular interest (coupon) and return principal at maturity.
Yield
The income return on an investment, expressed as a percentage. For bonds, yield is the annual interest relative to price. For stocks, it refers to the dividend yield. Yield and price move inversely for bonds.
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