30-Year Treasury

The 30-Year: It's a 30-year piece of paper guaranteed by the full faith and credit of the U.S. government's ability to tax its hard-working citizens. You write a check to the government giving it cash. They give you a promise to pay you interest twice a year for 30 years, at which point they then give you back the principal, or your original investment. These bonds are taxed at the ordinary income rate, as if adding salt to a low interest wound.