- Long-term debt security issued by the U.S. Department of the Treasury.
- Maturity:
- 20-30 years, with a maximum of 30 years.
- Interest:
- Coupons are paid semi-annually to the holder of the bond.
- Repayment:
- When matured, the bond holder is given back the principal or face value.
- Risk:
- Government-secured low-risk investments that also carry risks such as the lower return rates, risk of inflation, variable interest rate risk, and even possible loss in the secondary market.
- Form a part of U.S. Treasury securities, which include Treasury notes and bills.
- Available for purchase directly from U.S. Treasury or from banks, brokers, or mutual funds.
