Treasury Bond Law & Legal Definition
A treasury bond is is a type of treasury security used by the Federal Reserve to finance debt. It is a marketable, fixed-interest U.S. Government debt security with a maturity over 10 years and sold in a minimum $1,000 denomination. Treasury bonds usually mature in 10 to 30 years, but bonds with a shorter duration are available on the secondary market.
U.S. government bonds and three-month long T-Bills are considered one of the least risky in investments. Treasury bonds are exempt from state and local taxes.
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