Glossary

Treasury bonds, or T-bonds, are long-term debt securities issued by the US Department of the Treasury to finance government operations. 🏛️

They come with a fixed interest rate, known as a "coupon rate," and have maturities ranging from 10 to 30 years.

For example, a 30-year Treasury bond with a face value of $1,000 and a 2% annual coupon rate would pay the bondholder $20 per year in interest payments.

Fun fact: Treasury bonds are considered one of the safest investments in the world because they're backed by the full faith and credit of the US government. 🇺🇸 This high level of safety has led to the nickname "risk-free" rate, which is used as a benchmark for other investments' risk and return characteristics.