30-Year Treasury Bond Calculator
Here's a comprehensive table summarizing key aspects of the 30-Year Treasury Bond:
| Aspect | Details |
|---|---|
| Issuer | U.S. Department of the Treasury |
| Maturity | 30 years from the date of issuance |
| Coupon Payment | Semiannual (twice a year) |
| Interest Rate | Fixed rate determined at auction |
| Face Value | Typically $1,000 |
| Yield | The return on investment; varies based on market conditions |
| Trading Symbol | TLT (iShares 20+ Year Treasury Bond ETF) |
| Taxation | Exempt from state and local taxes; subject to federal taxes |
| Market Risk | Prices fluctuate with interest rate changes |
| Credit Risk | Virtually zero (backed by the U.S. government) |
| Investment Use | Long-term investment, income generation, portfolio diversification |
| Inflation Protection | No built-in inflation protection (unlike TIPS) |
| Liquidity | Highly liquid; traded in large volumes |
| Auction Frequency | Monthly |
| Typical Buyers | Institutional investors, pension funds, individuals seeking low-risk investment |
| Duration | Approximately 20-25 years (for interest rate risk measurement) |
| Recent Yield (as of 2024) | Varies; check current financial news for real-time data |
Key Characteristics of 30-Year Treasury Bonds:
- Long-Term Investment: These bonds are considered a safe long-term investment.
- Interest Rate Sensitivity: Longer duration makes them more sensitive to interest rate changes compared to shorter-term bonds.
- Inflation Considerations: While they offer fixed interest payments, inflation can erode purchasing power over time.
Market Considerations:
- Economic Indicators: Investors watch economic data closely, as it influences bond yields.
- Monetary Policy: Actions by the Federal Reserve can impact interest rates and bond prices.