Government Bond Definition
Government Bond means a debt obligation in which an individual or an organization lends a certain amount of money, for a specified period, with a specified interest rate, to a country. This debt investment is issued by a government denominated in the country's own currency. A government bond is backed by the credit and taxing power of a country, therefore the risk of default is very little. The best known types of these bonds are short-term Treasury bills, medium-term Treasury notes, and long-term Treasury bonds.