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U.S. Treasury Note
A debt security backed by the full faith and credit of the United States government with a maturity between one and 10 years. They may be purchased directly from the government or from a bank; they have coupon payments payable every six months. Treasury notes may be bought competitively or non-competitively. In a non-competitive transaction, one takes the interest rate he/she is given on a Treasury note. In competitive investing, one bids on a desired yield; however, this does not mean it will be accepted. Treasury notes are low-risk, low-return investments. The minimum purchase is $1,000 and the maximum is $1 million in competitive bidding, or $5 million in non-competitive. They are known informally as T notes. See also: Treasury Bill, Treasury Bond.