A U.S. Treasury bond is a debt instrument issued by the U.S. Treasury Department to raise funds for the operation of the federal government.
To put it simply, you can think of purchasing a U.S. Treasury bond as the federal government taking out a loan from you. As with any loan, there is an interest rate and a payment schedule associated with it. Depending on the type of U.S. Treasury bond, you will receive these interest payments until the bond matures and the federal government's obligation is fulfilled.
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