Business and Personal Finance Dictionary

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• TREASURY NOTE
  
  Like US Treasury bills and bonds, Treasury notes are debt securities issued by the US government and backed by its full faith and credit. They are available at issue through Treasury Direct in denominations of $1,000 to $1 million and are traded in the secondary market after issue. While bills are short-term issues and bonds are long-term, notes are intermediate-term securities, with a maturity date that ranges from two to 10 years. The interest you earn on Treasury notes is exempt from state and local, but not federal, taxes. And while the rate at which the interest is paid is generally less than on long-term corporate or Treasury bonds, the shorter term means less inflation risk.
  
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