answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Why two years treasury bonds pay lower rates than five years treasury bond?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the difference between Treasury Bond and Treasury Note?

The difference is the length of time to maturity. Treasury Notes mature in 10-years Treasury Bonds mature in 30-Years


I can't find the treasury Bonds my parents gave me several years ago. My parents are now deceased. What can I do.?

Now the issue is about the long term treasury bonds these kinds of issues can be assisted by the following site http://www.marketoracle.co.uk/Article5403.html


how long does it take a us treasury bond purchased in 2000 to mature to face value?

All treasury bonds reach final maturity at 30 years of age. To determine the current value of your bonds, visit www.publicdebt.ustreas.gov and download the Savings Bond Wizard.


What is the definition of treasury yield?

The yield of a bond is the interest that it pays (annualized) divided by the purchase price of the bond (taking into account any discount or premium on the price). Treasury yield refers to the actual interest rate on bonds issued by the U.S. Treasury. Treasury yield is not a single number, because they issue bonds with many different maturities (from 1 month to 30 years); the yields on the 2-year and 10-year bonds are the most commonly-quoted benchmarks.


Which of these government securities pay a fixed rate of interest every six months until they mature at thirty years?

treasury bonds


Is a us treasury bond a valuable gift?

Treasury bonds can be extremely valuable gifts because they are a great return on you investment. They will double their value in 10 years! Then they can be reinvested as they mature. Its often a popular gift for children.


Suppose interest rates have been high the past 2years and you expect they will soon go down A reasonable strategy for bond investors during this time period would be to?

The market is always on a slope, and is therefore expected to do the complete opposite of its current standings in the following years. There for a bond investor would want to lock in the current interest rates by buying multiple bonds from the government, and in the future, when the interest rates lower, sell them in the market to individuals who are looking for the high interest rates you have, since those bonds will have higher returns.


Are mortgage interest rates lower than they were a few years ago?

Yes the rates are lower. In fact they have never been lower so if you want to buy this is the best time to do it as there are many foreclosed and auction houses on the market today.


Have health insurance rates been rising in recent years?

In general, health insurance rates have been rising in recent years. If you've found your rates have not been rising, you should check your coverage. Insurance companise who offer lower rates may not be providing as much coverage.


What type of debt instruments does the federal government issue along with bonds?

Securities with maturity dates of less than a year are called Treasury bills (or T-bills); those with maturities from one to ten years are called notes; those with maturities exceeding ten years are generally called bonds.


What happened to the U.S. Treasury Bonds that sold for 17.50 and became valued at 25.00 7 years later. ?

I have a $25.oo bond, EE series, 1977. What interest would I get when I cash it?


What are some reasons why people should consider I Bonds?

I Bonds, or Individual savings bonds, also called Series I savings bonds, are savings bonds that are issued through the United States Department of Treasury. They are guaranteed to never lose value. I bonds are started with a 1 year minimum hold time, and the bond can not be released. They also have a penalty of three months of interest rate if they are redeemed before 5 years. After 5 years the penalty for redemption will end. In times of inflation the I bond will accrue interest. This interest can be earned for up to 30 years. When the bond is redeemed, let's say in 30 years, one will get the original amount invested and all of the interest accrued over the 30 years.