A Treasury Bond is a long-term debt obligation issued by the U.S. government. Treasury Bonds are issued with maturities ranging from 20 to 30 years and are backed by the full faith and credit of the U.S. government.
Treasury Bonds pay interest income every six months. The interest income is taxable for federal income tax purposes but is tax-exempt for U.S. state income tax purposes. The interest income is reported to the holder on Form 1099-INT (Interest Income).
Investors can purchase and hold Treasury Bonds until maturity or sell them to another party. The Treasury Direct website provides more information and instructions on how to purchase a Treasury Bond, Treasury Note, or Treasury Bill.