A debt security issued by the U.S. government that you lend money to and get paid back with interest after a set period. Treasury notes typically mature in 2 to 10 years. They are considered very safe because they are backed by the U.S. government.
You buy a 5-year Treasury note for $10,000 that pays 4% interest per year. Each year you receive $400 in interest payments, and after 5 years you get your $10,000 back. The U.S. government guarantees this repayment.
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