Ktown스토리
케이톡
If you really wish, please translate this
What are Treasury Bills, Notes and Bonds?
By Kimberly Amadeo, About.com Guide
Question: What are Treasury Bills, Notes and Bonds?
Answer: Treasury bills, notes and bonds are sold by the U.S. Treasury Department. These are the safest investments in the world, since they are backed by the U.S. Government. Since they are so safe, they tend to have the lowest interest rates.
Treasury bills, notes and bonds are sold at auction. This means they can be bought for more or less than the face value, depending on demand. For example, when demand is high, bidders will pay more than face value. Bidders know Treasury bills, notes and bonds can be resold on the open market. This means their the price can fluctuate further.
The interest rate is paid every six months, and does not change throughout the term of the product. If you hold onto them until term, you will get back the face value plus the interest that was paid over the life of the bond, no matter what you paid for them at auction. The minimum investment amount is $10,000, placing them out of reach for many individual investors.
The interest rate paid should not be confused with the Treasury yield. This is the total return over the life of the bond.Since they are sold at auction, Treasury yields change every week. Here's how it works: If demand is low, bonds are sold below face value, which is similar to getting them on sale.
Therefore, the yield is high. They buyers get more for their money. When demand is high, they are sold at auction above face value, and the yields is low. The buyers had to pay more for the same interest rate, so they get less for their money.
The difference between bills, notes and bonds are the length until maturity:
Treasury bills are issued for terms less than a year.
Treasury notes are issued in terms of 2, 3, 5, and 10 years.
Treasury bonds are issued in terms of 30 years, and were reintroduced in February 2006.
Often Treasury bills, notes and bonds are simply called "bonds" for short. They are also often referred to as "Treasuries." (Updated January 2, 2010)
By Kimberly Amadeo, About.com Guide
Question: What are Treasury Bills, Notes and Bonds?
Answer: Treasury bills, notes and bonds are sold by the U.S. Treasury Department. These are the safest investments in the world, since they are backed by the U.S. Government. Since they are so safe, they tend to have the lowest interest rates.
Treasury bills, notes and bonds are sold at auction. This means they can be bought for more or less than the face value, depending on demand. For example, when demand is high, bidders will pay more than face value. Bidders know Treasury bills, notes and bonds can be resold on the open market. This means their the price can fluctuate further.
The interest rate is paid every six months, and does not change throughout the term of the product. If you hold onto them until term, you will get back the face value plus the interest that was paid over the life of the bond, no matter what you paid for them at auction. The minimum investment amount is $10,000, placing them out of reach for many individual investors.
The interest rate paid should not be confused with the Treasury yield. This is the total return over the life of the bond.Since they are sold at auction, Treasury yields change every week. Here's how it works: If demand is low, bonds are sold below face value, which is similar to getting them on sale.
Therefore, the yield is high. They buyers get more for their money. When demand is high, they are sold at auction above face value, and the yields is low. The buyers had to pay more for the same interest rate, so they get less for their money.
The difference between bills, notes and bonds are the length until maturity:
Treasury bills are issued for terms less than a year.
Treasury notes are issued in terms of 2, 3, 5, and 10 years.
Treasury bonds are issued in terms of 30 years, and were reintroduced in February 2006.
Often Treasury bills, notes and bonds are simply called "bonds" for short. They are also often referred to as "Treasuries." (Updated January 2, 2010)
좋아요 0
태그
DISCLAIMER
이곳에 게시된 글들은 에이전트 혹은 사용자가 자유롭게 올린 게시물입니다. 커뮤니티 내용을 확인하고 참여에 따른 법적, 경제적, 기타 문제의 책임은 본인에게 있습니다.
케이타운 1번가는 해당 컨텐츠에 대해 어떠한 의견이나 대표성을 가지지 않으며, 커뮤니티 서비스에 게재된 정보에 의해 입은 손해나 피해에 대하여 어떠한 책임도 지지 않습니다.
