What is the difference between a treasury bill and a treasury bond?

What is the difference between a treasury bill and a treasury bond Introduction: The Foundation of Government Debt Hello everyone! Welcome to today's video, where we'll be exploring the intriguing realm of government debt. At its core, government debt is a way for a country to finance its operations, projects, and initiatives. Two key instruments in this domain are treasury bills and treasury bonds. While they may seem similar, there are crucial distinctions that every investor should be aware of. So, let's dive in! The Basics: Treasury Bills We'll begin our journey with treasury bills, often referred to as T-bills. These are short-term debt instruments issued by the government, typically with maturities ranging from a few days to a year. T-bills are considered one of the safest investments available, as they are backed by the full faith and credit of the government. They are sold at a discount to their face value, and the difference between the purchase price and the face value represents the investor's return. This is known as the 'yield' or 'discount rate.' Due to their short duration, T-bills are often favored by those seeking liquidity or as a temporary parking place for funds. The Allure of Treasury Bonds