1. TREASURY ISSUE BY: AMBER PIEKANSKI

2. DEFINITION: A coupon-bearing debt obligation issued by the U.S. government, therefore it does not lose value. Treasury bonds pay interest every 6 months and the owner will pay interest semi-annually. These bonds are also exempt from state and local taxes.

3. LIMITS: Treasury bill: matures in no more then one year Treasury note: matures no less then two years and no more then ten years Treasury bond: matures no less then ten years to no more then thirty years All treasury issue are bought at either below, at, or above their face value. When the issue is bought, there is a dollar amount and year maturity that comes with it. E.g. $10,000 ten year treasury note with a 4.25% coupon(interest) rate

4. INVESTORS: Conservative investors would invest in these bonds because they are very low risk due to the fact that they are government issued and have a guaranteed increase.

5. MAKE MONEY: The way you make money off of this type of investment is every six months, the government pays you the coupon rate (interest rate) and after the term of the years on the investment, you can redeem it for the original amount. Your $10,000 investment with a 4.625% coupon rate would receive $231.25 every six months from the government. After ten years and redeeming your bond for the $10,000, your total return would be $2,347.17.

6. INVESTING: You can purchase these from: The federal government which holds auctions A broker: you would have to pay transaction fees and possibly over the face value of the investment There are different prices among all treasury issues.

7. RISKS: There is really little to no risk in these investments. For sure return, semi-annual check from government, and a guaranteed redeemable amount at the end of the term.

8. WORKS CITED: http://www.bankrate.com/brm/green/investing/investing3-1a.asp http://www.thesimpledollar.com/2007/01/04/making-sense-of-treasury- securities-treasury-bills-notes-and-bonds/ http://www.investorwords.com/5061/Treasure_Bond.html#ixzz25ArFd223