U.S. Government bonds are consider one of the safest invest available. Since it is safe it does provide as much return as other bonds.
- Investment objective is to provide income while diversifying
- Liquidity is from low to high
- This is guaranteed for timely payment of principal and interest by the U.S. government
- Low to high fluctuation of principal and return
- May be exempt from state taxes and is taxed as ordinary income
- You are an investor of the U.S. government