What are US Government Bonds?
The bonds issued by the US Government are called Treasuries. Treasuries are regarded as the safest bond investments as they are backed by the US government. Yet another advantage of Treasury is that the income an investor earns is free from state and local taxes. US Treasury securities are a great way to invest and save for the future. The following are the investment options available with US government bonds: US Treasury bills with maturities from 90 days to one year. These bills are sold at a discount from their face value. For instance, you might pay $950 for a $1,000 bill. When the bill matures, you would be paid $1,000. The difference between the purchase price and face value is interest. US Treasury notes with maturities from two to 10 years. These pay interest every six months until maturity. US Treasury bonds with maturities from 10 to 30 years. Like Treasury notes, Treasury bonds pay interest every six months. Treasury Inflation-Protected Securities (TIPS) provide protection
