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Government bonds are basically a debt owed by the government to the holder of the bond. The government who issued the bond pays interest on it (called the "coupon") just like any other debt, and at the repayment date of the bond (called "maturity") the debt has to be repaid in full. Government bonds are usually less risky than corporate bonds, but that isn't always the case. The safest government bonds have a AAA rating, like Australia, the United States, the United Kingdom, and Singapore.
A bond is a loan document; the purchaser loans money to whoever issued the bond, receives interest payments on a schedule and receives the principal back at the maturity of the bond.

A government bond is one sold by a government agency at some level. Government bonds sold by governments below the federal (cities, states, water districts, whatever) are called municipal bonds. Bonds sold by the federal government that make periodic interest payments are called Treasury notes, and bonds sold by the federal government at a discount from their face value, that do not make periodic interest payments but pay out the face value at maturity, are called Savings Bonds.

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9y ago
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10y ago

A government bond is an investment a person can make that will allow their money to grow over time. Bonds grow at a fixed percentage, so purchasing $100 in bonds now will result in more money when you cash them in at a later date down the road.

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11y ago

i hace no idea what it is but i sure would like to find out!!!!!!!!!!!!!!!

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13y ago

Essentially a term loan to the government. Interest (called a coupon) is usually a fixed rate of return.

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15y ago

Government bonds are bonds issued by the government, in the currency of the country. Savings bonds are an example of government bonds.

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Q: What is a government bond?
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Related questions

What is a Loan to the Government?

a bond


What is a government iou called?

A bond.


Who can issue a municipal bond?

A municipal bond can be issued by the local government or the bonds' agencies. Specifically, the bond's issuing can be including states, cities, counties and a lot of other government entities.


What do you call a Loan to the government?

A loan made to the goverment is done in the form of a bond. So if you are in the situation where you are loaning to the government it would be called a bond.


Are interest rates on government bonds usually calculated on the face value of the bond?

The interest earned on government bonds is calculated on the face value of the bond plus the interest that has been earned on the bond.


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The symbol for Vanguard Emerging Markets Government Bond ETF in NASDAQ is: VWOB.


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The symbol for Vanguard Intermediate -Term Government Bond ETF in NASDAQ is: VGIT.


What is the symbol for Vanguard Long-Term Government Bond ETF in NASDAQ?

The symbol for Vanguard Long-Term Government Bond ETF in NASDAQ is: VGLT.


What is a bond issued by a government or public body of which the interest is exempt from Federal taxation?

Municipal Bond


How does the risk or return ratio of a government bond compare with that of other types of investments?

The risk of a government bond is minimal, though the return from the government bond is very low compared to other lucrative bonds available in the market.When you opt for more return, there is more risk. Whereas though in government bond, the return is low, your investment is well secured and risk ratio is almost nil.


What has the author Beverley W Bond written?

Beverley W. Bond has written: 'State government in Maryland, 1777-1781' -- subject(s): Politics and government


How do you make a sentence using bond?

A mother and child have a special bond. What type of glue will bond wood and plastic? There's a government bond in the safety deposit box.