Treasury bonds (T-bonds) are long-term debt securities issued by the government with maturities of 10 to 30 years. They pay a fixed interest rate (coupon) semi-annually and return the face value at maturity.
For example, a 20-year Treasury bond with a face value of $1,000 and a 4% coupon rate pays $40 per year ($20 every six months) and returns $1,000 at maturity.
Treasury bonds are considered among the safest investments in the world because they are backed by the government. They are popular with conservative investors seeking stable, long-term income. Bond prices fluctuate with interest rates — when rates rise, bond prices fall, and vice versa.