A (very) brief guide to treasury bonds
U.S. treasury bonds are backed by the full faith of the government, and are considered by many to be one of the safest investments you can make. The government stopped issuing them for a while, but has begun issuing them again recently. They are sold at fixed intervals each year. (In 2007 they’ll be offered in February, May, August & November.) The bonds earn interest which is paid every six months for a period of 30 years. This doesn’t mean that you must hold the bond for the full 30 years though — you are free to buy and sell bonds at any point in their lifecycle on the secondary market. When bonds are first issued, you can buy them directly from the U.S government by going to www.treasurydirect.gov. Bonds are often used by people who want a guaranteed steady income for the long haul. A side benefit of them is that they are exempt from state and local income tax. For more information, visit the treasury bonds at a glance page on the TreasuryDirect site.
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