government bond

Other forms: government bonds

Definitions of government bond

1. noun

   a bond that is an IOU of the United States Treasury; considered the safest security in the investment world
   types:

   savings bond

   non-negotiable government bond; cannot be bought and sold once the original purchase is made

   Treasury, Treasury obligations

   negotiable debt obligations of the United States government which guarantees that interest and principal payments will be paid on time

   T-bill, Treasury bill

   a short-term obligation that is not interest-bearing (it is purchased at a discount); can be traded on a discount basis for 91 days

   Treasury bond

   a debt instrument with maturities of 10 years or longer

   Treasury note

   securities with maturities of 1 to 10 years; sold for cash or in exchange for maturing issues or at auction

   type of:

   bond, bond certificate

   a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal