What is the treasury bond?
The cash bond is a debt tool issued by the Ministry of Finance of the United States. Treasures receive money that can be used to operate the United States by the sale of bonds and other financial securities, and provides citizens incentives to buy such securities to ensure that it has money when it needs them. By purchasing a bond of the Ministry of Finance, someone basically lends the government money in exchange for paying fixed interest every six months. Once the bond matures, the holder receives his nominal value. They are sold four times a year: in February, May, August and October. The bond auction holds the Ministry of Finance and individuals can also buy bonds directly through the Ministry of Finance. Recipients can buy cash register bonds in a wide range of denominations, with the maximum permissible purchase having a bon worth $ 5 million and the buyer receives interest payments every six months before the bond matures. Interest yields tend to be relatively lowé and definitely lower than risky securities, but some people prefer to invest in T-Vazba, as they are called because they are highly reliable.
Interest income from the Ministry of Finance is taxed only at the federal level, not at the state or local level. This may be a clear advantage for people who receive big interest payments, and are another reason why some people like to invest in government bonds. Tax forgiveness is one of the incentives offered by the Ministry of Finance to encourage people to buy T-Vazby.
Interest rate on bonds of the Ministry of Finance has less than thrilling, which leads many investors to buy these bonds in large quantities to ensure large interest payments. This can invest in bonds of the Ministry of Finance for people without much money as they may lack funds necessary to buy a sufficient amount of bonds toInterest payments have been used. However, treasury bonds can also be used as a savings tool, as the nominal value of the bond will be paid when it ripens and creates an explosion of funds that can be useful. For example, parents could decide to buy T-Vazby annually to have their children money for college.