Course 108: Introduction to Government Bonds
The Basics of Government Securities
In this course
1 Introduction
2 The Basics of Government Securities
3 Treasury Bonds
4 Treasury Notes
5 Collateralized Mortgage Obligations
6 Agency Bonds and Mortgage-Backed Securities
7 U.S. Savings Bonds
8 You Can Invest in Your Government through Government Securities

To fund government programs and to meet its payrolls, the U.S. government issues its own bonds from the Treasury and from several government agencies. Institutional investors trading very large blocks of bonds do most of the trading in these securities. Most individual investors invest in government bonds through mutual funds. Overall, U.S. government bonds are very popular with investors worldwide.

Many people consider U.S. government bonds the safest of all because of the creditworthiness of the U.S. government.

Government bonds offer fixed interest rates. Most government bonds do not have specific collateral backing them. Instead, they are backed by the full faith and credit of the U.S. government.

Government bonds have maturities ranging from one to 50 years. Although some government securities mature in less than one year, those securities are really not bonds but are part of the money market.

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