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These bonds carry the "full faith and credit" of the U.S. government. These are considered the safest of all investments.
There are many other types of bonds ? corporate bonds, zero-coupon bonds, U.S. Treasury Inflation Protected Securities, government sponsored enterprise debt securities, high-yield bonds, and bond funds are just a few...
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These also have associated risks as well as the reward that is the guaranteed payment of interest for a specified time.
The risks are liquidity, interest rate, credit risk, and call risk. Liquidity risk is what occurs when the bonds do not trade well. If prevailing interest rates are higher than the coupon rate, investors are less likely to purchase the bonds...
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