Understanding the Language
Bond: A debt instrument, essentially an IOU, issued by governments or companies that is repaid with interest over a specific time period.</br></br>Yield: Total return on the bond investment, including interest rate and price, expressed as an annual percentage rate.</br></br>Treasurys: Issued by the Treasury Department to raise money for the federal government. They vary in duration, from three- and six- month bills through two-, three- and five-year notes, to 10- and 30- year bonds.</br></br>TIPS: Treasury Inflation-Protected Securities adjust the value of the principal amount to keep pace with price changes.</br></br>Munis: Issued by states, counties and local authorities to raise money for roads, schools, sewers, hospitals, stadiums, airports and other municipal projects.