What is the difference between state accounts and treasury bonds?

Proposals for Treasury and Treasury Bonds are securities sold by the Ministry of Finance of the United States. There are two main differences between these types of problems. The first difference is that the Ministry of Finance accounts have a maturity of less than one year, while government bonds have a maturity of more than 10 years. The second difference is that the accounts of the Ministry of Finance do not have interest payments and government bonds have semi -annual interest payments. The Ministry of Finance accounts are about one third of the outstanding US government debt and are issued every week, with a maturity of three months, six months and one year. The cash registers of the Ministry of Finance are auctioned on Monday, with the payment due to the following Thursday. The bonds of the Ministry of Finance are issued four times a year - in February, May, August and October - with maturity of 15, 20 and 30 years. The difference between the nominal value and the discount price. Profit for the purchase of the Treasury Bond is reflected in the difference between the nominal value and the discount price and the amountm semi -annual interest payments. The Ministry of Finance accounts and bonds of the Ministry of Finance are considered to be the safest possible investment that the investor can make because they are supported by the US government. Their shorter periods are the reason why the Ministry of Finance accounts are widely considered to be the less risky of them.

The Ministry of Finance is calculated from the accounts of the Ministry of Finance and Treasury Bonds and reflects interest rates for which the US government can buy dollars. The yield curve shows an interesting correlation between the accounts for the treasury and the bonds of the Treasury. The yield curves were expected to revenue or return on investment over time and calculated by means of a process known as the Bootstrap method, which calculates zero rate for a number of securities.

As could be expected, the return on investment is usually higher when money is invested for a longer period of time. In thatThe graph is reduced by the graph, with lower yields in the short term - three months to one year - and in the long run higher yields - five to 30 years. In rare moments of the economic crisis, the yield curve is inverted, which is known as backup. In this situation, it is considered to be more risky to hold long -term securities.