Treasury Notes (T-Notes)

These are government securities that are issued with maturities of 2,3,5,7 and 10 years and pay interest every six months (semi-annually).  The notes pay a fixed rate of interest every six months until maturity, when investors receive their face (par) value.  Because of the longer maturity, the yield is usually higher than T-bills.  The notes are sold about once a month at auction.  Minimum purchase is $1,000.