Treasury bills (T-Bills), notes and bonds are marketable securities the U.S. government sells in order to pay off maturing debt and to raise the cash needed to run the federal government.
*** When you buy one of these securities, you are lending your money to
the government of the United States. ***
.
T-bills are short-term obligations issued with a term of one
year or less. (and because they are sold at a discount from face
value, they do not pay interest before maturity. The interest is the
difference between the purchase price and the price paid either at
maturity (face value) or the price of the bill if sold prior to
maturity.)
Treasury notes and bonds, on the other hand, are securities that have a
stated interest rate that is paid semi-annually until maturity.
** What makes notes and bonds different are the terms to maturity.
** Notes are issued in two-, three-, five- and 10-year terms.
** Conversely, bonds are long-term investments with terms of
more than 10 years.
I would like to be the first to say that the sky is falling, so bills, notes and bonds won't be paid.
Furthermore, 2012, meteorites, aliens.
How do you even go about buying Bills, Notes, and Bonds?
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How do you even go about buying Bills, Notes, and Bonds?
Treasury Bills
Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks. Bills are sold at a discount from their face value.
Treasury Notes
Treasury notes are government securities that are issued with maturities of 2, 3, 5, 7, and 10 years and pay interest every six months.
Treasury Bonds
Treasury bonds pay interest every six months and mature in 30 years.
Treasury Inflation-Protected Securities (TIPS)
TIPS are marketable securities whose principal is adjusted by changes in the Consumer Price Index. TIPS pay interest every six months and are issued with maturities of 5, 10, and 30 years.
I Savings Bonds
I Savings Bonds are a low-risk savings product that earn interest while protecting you from inflation. Sold at face value. Check out our table that is a comparison of TIPS and Series I Savings Bonds.
EE/E Savings Bonds
EE/E Savings Bonds are a secure savings product that pay interest based on current market rates for up to 30 years. Electronic EE Savings Bonds are sold at face value in TreasuryDirect. Paper EE Savings Bonds are sold at 1/2 face value.
Has anyone ever heard of Laddering Bonds?
I'm trying to figure out how to make this work, but I don't understand
it. Wiki is no help.