Treasure,Security-,Safe,Invest finance, share, loan Treasure Security- A Safe Investment


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Types of Treasure Securities:   Treasury Bill: In short, it is termed as T-bill. This primary treasure security is availed through American Department of Treasury. More importantly, it is traded at a discount from apparent face value. This bill is usually a short-term investment and takes less than a year to attain maturity. There is no issuance of interest until the date of maturity of this bill.   Treasury Note: This is another kind of treasury obligation. Unlike Treasury bill, the Treasury note takes two to ten years to attain maturity. Every 6 months, the investor gets the coupon payments or interest payments. The investor gets the interest payments for 2, 5, or 10 years of maturity date. The interest payments can have average value of $ 1,000 to $ 10,000.                                     Treasury Bond: It represents the longest maturity of all other treasure securities. This bond has a maturity period of usually 30 years. Similar to Treasury note, this bond also offers coupon or investment payments after every 6 months. The treasury department has discontinued the direct issuance of this bond, from the year 2001. Now, this kind of investment bond has become obsolete. However, this bond is widely traded in the secondary market. Hence, it is possible to continue using it until the maturity of last Treasury bond being issued.   Treasury Inflation Protected Security: In short, it is termed as TIPS. This is the fourth and last type of Treasure security. This bond is unique and differs from all other kinds of investment securities. This investment bond offers the adjustment of principal value of the security for inflation until the maturity date. The adjustment amount goes with the Consumer Price Index. Due to which, the coupon or interest payment on TIPS differ the adjusted amount. This is to protect the investor against the demeaning effects of inflation levied on the principal amount of the investment.   The American Department of Treasury, which is located in the most powerful economic country of the world backs and supports these treasury securities, so it referred as a very safe investment.   Although, these bonds offer relative safety to the investors, but they fail to yield growth the way any other corporate or municipal bonds yield. Rather than growth, capital preservation is the main objective of the people interested for investing in these treasury securities.   Other Versions of Treasure Bonds:   Besides the above mentioned treasury investments, the American government issues Patriot and STRIPS (Separate Trading of Registered Interest and Principal Securities) bonds.   The maturity period of Patriot and STRIPS Treasury bonds, falls between 1 to 30 years after the issuance date. These Treasury bonds have a similar structure to that of a T-bill, but the principal parts and the interests on security are distinct.   These treasury bonds maintain their inflation with principal balance or interest rate, adjusting the Nation’s economy.

Treasure,Security-,Safe,Invest

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