TREASURY BOND Meaning and
Definition
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A treasury bond is a long-term debt security issued by a national government, typically with a maturity of over ten years. It is considered a safe and low-risk investment as it is backed by the full faith and credit of the government. Treasury bonds are often referred to as "T-bonds" or "Treasuries."
These bonds are sold by the government to finance public spending and to manage its debt. They are issued with a fixed interest rate, known as the coupon rate, which is paid to bondholders semiannually until the bond matures. The maturity date specifies when the principal or face value of the bond will be repaid in full.
Treasury bonds are highly liquid and easily traded in secondary markets, providing investors with an opportunity to buy and sell them before maturity. The market price of these bonds fluctuates due to changes in interest rates and investor demand. If interest rates rise, the market price of existing bonds decreases, making them less attractive to investors. Conversely, if interest rates fall, the market price of bonds increases.
Investing in treasury bonds can be used as a source of income for individuals or as a way for institutional investors to diversify their portfolios and preserve capital. Due to their stability and low default risk, treasury bonds are often considered a benchmark for determining interest rates in financial markets.
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A species of exchequer bill.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for TREASURY BOND
- rreasury bond
- freasury bond
- greasury bond
- yreasury bond
- 6reasury bond
- 5reasury bond
- teeasury bond
- tdeasury bond
- tfeasury bond
- tteasury bond
- t5easury bond
- t4easury bond
- trwasury bond
- trsasury bond
- trdasury bond
- trrasury bond
- tr4asury bond
- tr3asury bond
- trezsury bond
Etymology of TREASURY BOND
The word "treasury" refers to the government's financial department responsible for managing revenue and public finances. The term "bond" comes from the Old English word "bonda", which means "serf" or "householder". Over time, the meaning of the word evolved, and it started to refer to obligations or agreements between parties. The combination of these two terms, "treasury bond", denotes a financial instrument issued by the government to borrow money from the public in exchange for regular interest payments and eventual repayment of the principal amount.
Similar spelling words for TREASURY BOND
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