6.6 U.S. Government Bonds
Both Treasury notes and Treasury bonds are semiannual bonds. Their only difference is the maturity or age of the financial asset. The U.S. government issues Treasury notes with maturities of between two years and ten years. It issues Treasury bonds with maturities of more than ten years. The Treasury bill is a short-term borrowing instrument with a maturity of less than one year. The Treasury issues one-month (four-week), three-month (thirteen-week), six-month (twenty-six-week), and one-year (fifty-two-week) Treasury bills. In addition to having shorter maturities than the notes and bonds, the Treasury bills are zero-coupon instruments in that they pay both the principal and the interest at maturity.
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