Glossary Word Definition: Treasury Bonds

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Treasury Bonds

Treasury bonds, which are guaranteed by the full faith and credit of the US Government, are coupon-bearing securities with initial maturities that extend from 10 to 30 years. Like notes, they pay interest semiannually and repay principal at maturity. T-bonds are also exempt from state and local taxes; they're available for a minimum and multiple of $1,000. Treasury bonds usually offer higher yields than notes due to their longer maturities.