Treasury bond calculator
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Are treasury bonds risk-free...
What Is a Government Bond?
What Is a Government Bond?
A government bond is a debt security issued by a government to support spending and obligations. Government bonds pay bondholders periodic interest payments called coupon payments.
How to buy treasury bills
Government bonds issued and backed by national governments are often considered low-risk investments. Government bonds issued by a federal government are also known as sovereign debt.
Key Takeaways
- A government bond represents debt issued by a government and sold to investors to support spending.
- Government bonds are considered low-risk investments since the government backs them.
- Because of their relatively low risk, government bonds typically pay low interest rates.
Types of Government Bonds
- Municipal Bonds: Local governments issue municipal bonds to fund infrastructure, libraries, or parks.
These "munis" often carry tax advantages and exemptions for investors. Munis may be supported by local tax dollars or revenue from a project like a toll road. Municipal bonds commonly provide investors with lower interest rates than riskie
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