Treasury Bond (T-Bond)
A Treasury Bond (T-Bond) is a long-term debt security issued by the U.S. government with maturities of 20 to 30 years. T-Bonds pay fixed interest (coupon payments) every six months and return the principal at maturity.
Key Features:
- Low risk investment backed by the U.S. government
- Pays semiannual interest, making it attractive for income-focused investors
- Longer maturity means higher yield compared to shorter-term Treasuries
Investors and economists closely monitor T-Bond yields as they influence mortgage rates, corporate borrowing costs, and overall economic conditions. See also: Treasury Bill (T-Bill)