Types of Bonds
Issuers of bonds include federal and local governments, government agencies, and corporations.
Treasury Securities: A bond issued by a national Government. Generally considered safe investments because the taxing authority of the government backs them. In the U.S., Treasury securities are not subject to state income tax. The following are three types of treasury securities.
- Bonds: Treasury bonds mature in more than 10 years.
- Notes: Treasury notes mature from one to 10 years.
- Bills: Treasury bills mature in less than one year.
Corporate Bonds: A bond issued by a corporation, usually through the public securities markets, which trades like stocks. Corporate bonds offer a higher yield than Treasury Securities since they carry a higher default risk.
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Infinex and First Commonwealth Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.