Investments, tenth edition

   Treasury Bonds and Notes 

  Figure  14.1  is an excerpt from the listing of 

Treasury issues. Treasury notes are issued 

with original maturities ranging between 1 

and 10 years, while Treasury bonds are issued 

with maturities ranging from 10 to 30 years. 

Both bonds and notes may be purchased 

directly from the Treasury in denominations 

of only $100, but denominations of $1,000 

are far more common. Both make semiannual 

coupon payments.  

 

The highlighted bond in  

Figure  14.1 

 

matures on July 31, 2018. Its coupon rate is 

2.25%. Par value typically is $1,000; thus the 

bond pays interest of $22.50 per year in two 

semiannual payments of $11.25. Payments 

are made in January and July of each year. 

Although bonds usually are sold in denomi-

nations of $1,000, the bid and ask prices 

are quoted as a percentage of par value. 

 

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