Government Bond
A security issued by a government to finance operations or projects.
Detailed Description
Government Bond
What are the main types of government bonds?
The main types of government bonds include Treasury Bonds, Treasury Notes, Treasury Bills, Municipal Bonds, and Savings Bonds.
What are the benefits of investing in government bonds?
Benefits include stability, income generation, portfolio diversification, inflation protection, and potential tax benefits.
What risks are associated with government bonds?
Risks include interest rate risk, inflation risk, credit risk, and reinvestment risk.
How do government bonds generate income for investors?
Government bonds generate income through periodic interest payments made to bondholders.
How do government bonds differ from stocks?
Government bonds are debt securities with lower risk and volatility, while stocks represent ownership in a company and can offer higher returns but come with greater risk.