by Angela cruz

What Are Govt Bonds?

What Are Govt Bonds?

The government uses government bonds to generate funding for new projects or infrastructure.

while investors use them to earn a predetermined return

You lend the government money when you buy a bond. Coupon interest is paid at regular periods. fixed-income bonds.

Governments guarantee their bonds. 

Even government bonds have credit risk.

what are the Types of government bonds

?

Treasury bills expire in less than one year

Treasury notes expire in one to ten years

Treasury bonds expire in more than ten years