What is a treasury bond?

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What is a treasury bond?

A treasury bond is a type of government debt security issued by the United States Department of the Treasury. It is a long-term investment instrument with a maturity period of 10 years or more. Treasury bonds are considered low-risk investments as they are backed by the full faith and credit of the U.S. government. They pay interest semi-annually and the principal amount is repaid at maturity. Treasury bonds are commonly used by investors as a means of preserving capital and generating income.