What type of investment is referred to as a "T-Bond"?

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A "T-Bond" refers to a treasury bond, which is a type of government-issued bond. These bonds are backed by the full faith and credit of the U.S. government, making them a solid and secure investment choice for many. They offer fixed interest payments to investors for a period of 10 to 30 years.

When considering other investment types, corporate bonds are issued by companies and carry more risk than government bonds since they depend on the financial stability of the issuing corporation. Mutual funds represent pools of various securities managed by investment professionals and are not categorized as bonds directly. Common stock represents ownership in a company and comes with higher risk and potential for higher returns compared to fixed-income securities like T-Bonds. Thus, the defining characteristic of T-Bonds being government-issued bonds highlights their safety and reliability as a long-term investment vehicle.

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