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difference between treasury bonds and government bonds? are they the same? I'm really confused

difference between treasury bonds and government bonds? are they the same? I'm really confused

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Answer #1

Treasury bond are the bond issued by the government with the maturity of 1 year or less. Government bond are the bond issued by the government with long term maturity.

T-bond are the short term source of financing while govt bond are long term shource of financing.

T-bond are issued at discount and on maturity investor will receive the maturity value. Govt bond on the other hand issued at market rate with the coupon (typically semiannual). Therefore govt bond holder will receive the periodic coupon and maturity value on maturity date.

Both the bonds are backed by the issuing government.

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