A U.S. Treasury bond is sort of a lengthy-time period IOU from the federal government. You lend cash, and in return, you get common curiosity funds till the bond matures. However right here’s the catch: the rate of interest is locked in whenever you purchase the bond. If charges go up later, your bond doesn’t modify — it simply retains paying the decrease fee. That’s one cause lengthy-time period bonds are falling out of favor proper now — as a result of…
