Treasury Note
A Treasury Note (T-Note) is a U.S. government debt security with a fixed coupon and a maturity of two to ten years. It pays semiannual interest and returns the principal at maturity.
Example: For example, a five-year Treasury Note with a 1.25% coupon pays semiannual interest of $0.625 per $100 of face value and trades in the market at a price that reflects prevailing rates; in a rising-rate environment the note may trade below or above par, affecting yield relative to the coupon.
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