What are the different types of government bonds?

What are the different types of government bonds?

Government bonds are debt securities issued by a government to support spending. The main types include Treasury bonds, municipal bonds, and savings bonds.

Can you explain Treasury bonds in more detail?

Sure! Treasury bonds are long-term investments issued by the U.S. Department of the Treasury, typically with maturities of 10 to 30 years. They pay interest every six months and are considered very low-risk.

What about municipal bonds? How do they work?

Municipal bonds are issued by states, cities, or other local government entities. They fund public projects and often offer tax-exempt interest, making them attractive to investors.

Are there risks associated with government bonds?

Yes, while government bonds are generally low-risk, they can still be affected by interest rate changes, inflation, and credit risk, especially with municipal bonds.