An interest-bearing bond issued by the US Treasury.
- For example, if you pay $1, 000 for a Treasury bond with a $50 interest payment, its yield is 5%.
- By the time the period was over, you could have earned 15% interest yield from a U.S. Treasury bond.
- In contrast, the regular Treasury bond will pay its coupon rate, which is about 4.4% for a 10-year note.
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