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U.S. Government Bonds

U.S. government bonds are popular because of their security. Treasuries are backed by the full faith and credit of the United States government, which basically means as long as the government is running and the dollar is worth something, holders of government bonds are assured of the safety of their principal and interest.

Understanding Government Bonds is relatively easy once you grasp the basics of U.S. bonds.

The first question most people have is, "What is the difference between US bonds, bills and notes?"

Each type of government bond has different characteristics. The most important difference between U.S. government debt securities is the length of their maturity. Maturity is the financial term for when the bond comes due and the principal must be repaid to the bond holder. Government bonds are issued in several different maturities. The government bond with the longest maturity are Treasury Bonds which have a maturity of 30 years.

The shortest maturity are Treasury Bills, or T-Bills which have maturities as short at four weeks.