What are Treasury Bills, Notes and Bonds?
What are Treasury Bills, Notes and Bonds?Answer: Treasury bills, notes and bonds are sold by the U.S. Treasury Department. These are the safest investments in the world, since they are backed by the U.S. Government. Since they are so safe, they tend to have the lowest interest rates. Treasury bills, notes and bonds are sold at auction. This means they can be bought for more or less than the face value, depending on demand. For example, when demand is high, bidders will pay more than face value. Bidders know Treasury bills, notes and bonds can be resold on the open market. This means their the price can fluctuate further. The interest rate is paid every six months, and does not change throughout the term of the product. If you hold onto them until term, you will get back the face value plus the interest that was paid over the life of the
