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LSDefine
Simple English definitions for legal terms
T-BOND
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A quick definition of T-BOND:
Term: T-BOND
Definition: A T-bond is a type of investment that people can buy from the government. It is also called a Treasury bond. When someone buys a T-bond, they are lending money to the government. In return, the government promises to pay back the money with interest after a certain amount of time. T-bonds are considered a safe investment because they are backed by the government.
A more thorough explanation:
T-BOND
A T-Bond is short for Treasury Bond, which is a type of government bond issued by the United States Treasury Department. It is a long-term investment that pays interest every six months until it matures, which can take up to 30 years.
For example, if you buy a T-Bond with a face value of $1,000 and a maturity date of 10 years, you will receive interest payments twice a year for 10 years. At the end of the 10 years, you will receive the $1,000 back.
Another example is if you buy a T-Bond with a face value of $10,000 and a maturity date of 30 years, you will receive interest payments twice a year for 30 years. At the end of the 30 years, you will receive the $10,000 back.
T-Bonds are a way for the government to borrow money from investors. The government promises to pay back the money with interest over a set period of time. The examples show how T-Bonds work and how investors can earn money by buying them. The longer the maturity date, the higher the interest rate tends to be, but the longer the investor has to wait to get their money back.