Types of Bonds

There are many kinds of bonds but with distinctive purposes and risk profiles. As such, there are: 1. Government Bonds: These bonds are from national governments. Because it is always possible for a government to raise funds either by taxing its citizens or by printing money to service that debt, government bonds happen to be very low in risk. The most famous examples of U.S. treasury bonds come in various maturities. There are what are called Treasury bills, which are short-term, and other issues have medium-term maturities called Treasury notes while the long-term is called Treasury bonds.