2 ms·
> just like a mortgage Typically mortgage payments include interest and principal, so that each payment reduces the total amount owed. Treasury bill, note and
by panarky 4y ago
> just like a mortgage
Typically mortgage payments include interest and principal, so that each payment reduces the total amount owed. Treasury bill, note and bond coupons are interest only, so at maturity the entire principal is due. Treasury debt is not incrementally paid off with each payment.