What Is US Treasury Bond

Q

What is US Treasury Bond?

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A

US Treasury Bond, also called T-Bond, is a marketable long-term debt security issued by The US Department of the Treasury.

US Treasury Department used to issue T-Bonds as physical papers. Today all T-Bonds are issued electronically to your online accounts.

Both the paper version and the electronic version of a US Treasury Bond has the following features:

  • It has an issue date and a maturity date, defining a long maturity term between 20 and 30 years.
  • It has a fixed face value, also called par value, for example, $10,000.00.
  • It has a coupon rate, for example, 11.825%.
  • It has a coupon payment schedule, for example, every 6 months.
  • It has a CUSIP (Committee on Uniform Securities Identification Procedures) number (and a series number) to identify the series of bonds with the same security features.
  • It has a serial number to identify a single bond paper, if it is issued physically.

Here is a picture of a US Treasury Bond paper issued on Oct 5, 1983:

US Treasury Bond - Paper Example
US Treasury Bond - Paper Example

As you can see from the picture, this US Treasury Bond has:

  • An issue date of October 5, 1983, and a maturity date of November 15, 2003, defining a maturity term of 20 years.
  • A fixed face value of $10,000.00, which can be redeemed as cash after the bond has matured.
  • A coupon rate of 11.825%.
  • A coupon payment schedule of May 15 and November 15 each year from 1984 to 2003. Unfortunately, the payment schedule is not printed on the bond.
  • A CUSIP number of 912810DG0.
  • A serial number of 935.

 

What Is US Treasury Bond Coupon

Introduction of US Treasury Bond

Introduction of US Treasury Bond

⇑⇑ US Treasury Securities

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