Question

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

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A U.S. Treasury Bill and Government of Canada Treasury Bill have the same maturity value of...
A U.S. Treasury Bill and Government of Canada Treasury Bill have the same maturity value of $10,000, same term of 90 days, and same price of $9,873.64. Find the difference between the quoted rates of these two T-bills. Please show work with formulas. No Excel.
I'm taking a phycics course & I'm confused regarding the difference of Net Force & Net...
I'm taking a phycics course & I'm confused regarding the difference of Net Force & Net Torque. Is it possible to have a system where the net force is zero, but the net torque is not zero??? And vice versa, is it possible to have a system where the net torque is zero, but the net force is not zero??? And is it possible to have a system where both Net Force & Net Torque are zero??? Can you give...
Apply Cauchy-Riemann to: f(z)=ln|z| +i Arg(z) What can you conclude? I'm not really even sure to...
Apply Cauchy-Riemann to: f(z)=ln|z| +i Arg(z) What can you conclude? I'm not really even sure to start with this one and I'm just really confused. Any help would be appreciated, thank you!
When the Government runs a budget deficit, it must sell Treasury bonds to finance that deficit....
When the Government runs a budget deficit, it must sell Treasury bonds to finance that deficit. To analyze the impact of increased government spending, assume the Treasury will be selling new 1-year Treasury bills. Use a supply and demand for bonds model to determine what is likely to happen to interest rates on 1-year bills. (Explain your graph)
I'm getting confused on how to post to the government activities general journal Cash was received...
I'm getting confused on how to post to the government activities general journal Cash was received during the year in the total amount of $3,399,599 for collections from the following receivables and cash revenues, as indicated:                         Current Property Taxes                                      $1,561,535                         Delinquent Property Taxes                                      235,000                         Interest and Penalties Receivable on Taxes              34,270                         Due from State Government                                    165,000                         Revenues: (total: $1,403,794)                               Licenses and Permits                                         601,314                               Fines and Forfeits                                              410,660                               Intergovernmental                                             160,000                               Charges for...
.Money market mutual funds invest in a. federal government Treasury bills. b. corporate bonds. c. federal...
.Money market mutual funds invest in a. federal government Treasury bills. b. corporate bonds. c. federal government Treasury bonds. d. corporate stock.
Yield spreads refer to the difference in yield between a safe government bond and a risky...
Yield spreads refer to the difference in yield between a safe government bond and a risky corporate bond of the same maturity. Which of the following statements are true of the yield spread? Yields on safe government bonds are always higher than yields on risky corporate bonds, The yield spread does not change over the business cycle, The yield spread does not change over the business cycle, or all statements are true
i'm confused with equation solenoid B= u.NI/L vs muti-loop B=u.NI/2PIR vs single-loop B=u.I/2R u. is mu(not)=...
i'm confused with equation solenoid B= u.NI/L vs muti-loop B=u.NI/2PIR vs single-loop B=u.I/2R u. is mu(not)= 4piE^-7 i don't know when to use each once of them. since only different is diving by L or 2piR or sometimes 2R really confused.
From a funding perspective, explain why governments issue government bonds treasury notes in order to manage...
From a funding perspective, explain why governments issue government bonds treasury notes in order to manage the liquidity risk in government finance
Hello can someone tell me the difference between independent assortment, gene recombination, linked genes, segregation and...
Hello can someone tell me the difference between independent assortment, gene recombination, linked genes, segregation and crossing over. I'm a little confused by these terms. Thank you!!!
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT