Investment Journal

The life or term of any bond is fixed at the time of issue. It can range from short-term intermediate-term to long term. Government bonds usually come in the form of treasury bills(one year or less), treasury notes(2 to 10 years) and treasury bonds(10 to 30 years). Generally speaking, the longer the term, the higher the interest rate that's offered to make up for the additional risk of tying up money for so long a time. The relationship between the interest rates paid on short-term and long-term bonds is called the yield curve.