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What are the different types of government bonds?
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24th Feb 2011 by admint
Types of Government Bonds:
• U. S. Treasury Issues – safest among the government bonds in terms of public investment in the country. It has a very low interest rate.
• Agency Bonds – financial institutions that are owned by government of USA and works as agencies of the government. They are entitled to issue bonds. Examples of these financial institutions are : The Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), the Federal Home Mortgage Corporation (Freddie Mae), and the Student Loan Marketing Association (Sallie Mae).
• Municipal and Corporate Bonds – Municipal bonds issued by municipalities to bring in cash for the infrastructure needs of the surrounding areas. Corporate bonds are issued by corporations to finance major infrastructural innovations/developments like bridges, roads and buildings.
• Zero Coupon Bonds – bonds that can be issued by different entities and is purchased at a big discount but is redeemed at its face value. It has no regular interest payment.
Types of Government Bonds:
• U. S. Treasury Issues – safest among the government bonds in terms of public investment in the country. It has a very low interest rate.
• Agency Bonds – financial institutions that are owned by government of USA and works as agencies of the government. They are entitled to issue bonds. Examples of these financial institutions are : The Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), the Federal Home Mortgage Corporation (Freddie Mae), and the Student Loan Marketing Association (Sallie Mae).
• Municipal and Corporate Bonds – Municipal bonds issued by municipalities to bring in cash for the infrastructure needs of the surrounding areas. Corporate bonds are issued by corporations to finance major infrastructural innovations/developments like bridges, roads and buildings.
• Zero Coupon Bonds – bonds that can be issued by different entities and is purchased at a big discount but is redeemed at its face value. It has no regular interest payment.
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10th Dec 2009 In Bonds
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Subjects: government bonds,