INTRODUCTION
Government securities are debt instruments issued by the government to raise funds for various purposes such as infrastructure projects, budget deficits and debt refinancing. These securities are generally considered low-risk investments because of the government’s high creditworthiness.
Types of Government Securities
Treasury Bills (T-Bills): These are short-term investment options with maturities of 91, 182 or 364 days, issued weekly. Investors who purchase T-Bills can expect to recover their initial investment within three, six or twelve months respectively.
Treasury Bonds: They are long-term, secure investments offering regular interest payments, usually semi-annually, until maturity. It is a debt security where the bond issuer (the borrower) issues the bond for purchase by the bondholder (the lender).
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