A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- BondA loan you make to a government or company that pays you interest and returns your money on a set date.
- Treasury BillA short-term government loan that matures in a year or less and is sold at a discount to its face value.
- Treasury NoteA U.S. government loan that matures in two to ten years and pays interest every six months.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Coupon RateThe fixed annual interest a bond pays, shown as a percentage of its face value.
- Government BondA loan to a national government, generally seen as low risk because it is backed by the government's ability to tax.
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Plain-English education — not personalized legal, tax, or investment advice.