What are Treasury notes and bonds*?
Treasury notes and bonds* are securities that pay a fixed rate of interest every six months until your security matures, which is when we pay you their par value. The only difference between them is their length until maturity. Treasury notes mature in more than a year, but not more than 10 years from their issue date. Bonds*, on the other hand, mature in more than 10 years from their issue date. You usually can buy notes and bonds* for a price close to their par value. Treasury sells two kinds of notes, fixed-principal and inflation-indexed. Both pay interest twice a year, but the principal value of inflation-indexed securities is adjusted to reflect inflation as measured by the Consumer Price Index — the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U). With inflation-indexed notes and bonds*, we calculate your semiannual interest payments and maturity payment based on the inflation-adjusted principal value of your security. What are U.S. savings bond
