Glossary

From A to Z all the terms you need to skip the jargon and get started!

Government Bonds

Government bonds are debt securities issued by a country's government to raise funds for public projects, such as infrastructure or social programs.

These bonds are considered relatively low-risk investments because they are backed by the government's credit. Investors receive periodic interest payments (called coupon payments) and the bond's face value upon maturity. 🏛️💵

For example, US Treasury bonds (T-bonds) are long-term government bonds issued by the United States with maturities ranging from 10 to 30 years.

Fun fact: US Treasury bonds, often seen as the gold standard for government bonds, were first issued during the American Civil War in 1861 to help finance the war effort. Today, they remain a popular investment option for individuals and institutions seeking a relatively safe and stable return. 🇺🇸📜