What is a Long Bond?
A long bond describes any bond investment with a maturity length of 10 years or more. Sometimes, the term “long bond” can be used to refer specifically to the U.S. 30 Year Bond. A bond is a type of investment very similar to an IOU. When you buy a stock, you are purchasing partial ownership of a company. The stock gives you a share of the company in return for your investment. When you purchase a bond, you are not buying part of the company, but rather loaning the company money, with a promise that they will pay you back at a certain date with a specific amount of interest. A long bond is a bond purchased from a government, company, federal agency, or other issuer with a maturity date of 10 years or more. Bond maturity lengths can vary, but must constitute a “long term” investment. Corporate bonds must have a maturity of at least five years. U.S. Treasury bonds, the type most people are familiar with, must have a maturity of 10 years or longer. All U.S. Treasury bonds can be called lon
