What are the different types of Treasury securities available for investment?
The US Department of Treasury offers various types of securities for investment. These include Treasury bills (T-bills), which are short-term bonds with maturities of one year or less. Treasury notes (T-notes) are medium-term bonds with maturities ranging from two to ten years. Treasury bonds (T-bonds) are long-term bonds with maturities of ten years or more. In addition to these, Treasury Inflation-Protected Securities (TIPS) are designed to protect against inflation by adjusting their principal value based on inflation rates. Another option is the Savings Bond, a non-marketable security with fixed interest rates and a guaranteed return. Finally, the Treasury also offers Floating Rate Notes (FRNs), which have variable interest rates that adjust with market rates. Investors can choose from these different types of Treasury securities based on their desired investment timeframe and risk appetite.
Answered May 3, 2024
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