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How much would it cost to get a 20 year $100,000 dollar note from the US government?

• I wanted to know how much it would cost to buy a note that will pay $100,000 dollars in 20 years. I know it wont be 100,000 dollars because thats what i will recieve after 20 years. But, how much would it cost TODAY. Another day it might cost more,...It might cost less..These are because of different factors...I just want to know how much would it cost if I were to buy it today..

• Answer:

  The treasury is now selling 30 year (not 20 year) bonds. They pay coupon interest on the principal, rather than accumulating reinvestment. You can read about them here : http://www.treasurydirect.gov/indiv/research/indepth/tbonds/res_tbond_rates.htm What you are looking for is a 20-year strip bond, in which a financial institution has seperated the interest and the principal of the bonds they purchase from the treasury, and you buy the fulfilment of the principal at maturity at a significant discount. 20-year strip bond with approximately a 6.5% coupon, you need to invest only $30000 today to receive $100000 at maturity. http://www.schwab.com/public/schwab/investment_products/bonds_fixed_income/types/treasuries/index.html?cmsid=P-982875&pg=P-999591&lvl1=investment_products&lvl2=bonds_fixed_income&refid=P-1028332&refpid=P-999572 If you want to keep track of interest free bonds in your newspaper: http://www.investinginbonds.com/learnmore.asp?catid=3&id=45 I could not find a pastable quote for 20-year tips or strips, but here is a paste of the 10Y: http://www.investinginbonds.com/charts/TIPS.html