Issued by cities or states to fund projects like schools. Leo liked these because their interest is often exempt from federal taxes .
Leo realized he didn't need to visit a bank in person. He found two main digital gateways: Buying savings bonds - TreasuryDirect how to buy bonds in usa
Issued by companies to expand. These offered Leo higher yields than government bonds but came with a higher risk of the company "defaulting". Phase 2: Finding the Gateway Issued by cities or states to fund projects like schools
Backed by the "full faith and credit" of the government, these are considered the safest. They include short-term T-bills (under 1 year), medium T-notes (2–10 years), and long-term T-bonds (20–30 years). He found two main digital gateways: Buying savings
Leo first learned that buying a bond is essentially to a borrower in exchange for interest payments (coupons) and the eventual return of his principal at "maturity". He discovered three main paths:
Meet Leo, a cautious but curious investor who wanted to move beyond his standard savings account. He’d heard bonds were a "safe haven" but didn't know where to start.
Here is the story of how Leo navigated the U.S. bond market. Phase 1: Choosing the Flavor