Treasury bond differences?

flyingaway

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I am looking at the Fidelity account with new issues of treasury bonds. I need some help to understand the difference between the two bonds:

(1) UNITED STATES TREAS SER BONDS 4.62500% 11/15/2044 BDS (CUSIP: 912810UF3)
(2) UNITED STATES TREASURY 2.12500% 01/15/2035 (CUSIP: 91282CML2)

I understand that there is a difference in their maturity length, but the difference in intertest is huge. What did I not know here?
 
Bond coupon rates can vary based on the dates of ORIGINAL issue. Yield to maturity is what to look at in long bonds,
I am looking at the Fidelity account with new issues of treasury bonds. I need some help to understand the difference between the two bonds:

(1) UNITED STATES TREAS SER BONDS 4.62500% 11/15/2044 BDS (CUSIP: 912810UF3)
(2) UNITED STATES TREASURY 2.12500% 01/15/2035 (CUSIP: 91282CML2)

I understand that there is a difference in their maturity length, but the difference in intertest is huge. What did I not know here?
Dates of the original issue of the bond will determine what coupon was it was sold at. Look at the yield to maturity for long bonds.

Bonds with lower coupons will be sold at a discount to make up for the yield to maturity if it's higher.
 
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Item 1 is a regular 20 year treasury bond paying 4.625% interest.
Item 2 is a 10 year Treasury Inflation Protected Security (TIPS) paying 2.125% interest.

TIPS offers protection against inflation, the regular bond does not.
 
Item 1 is a regular 20 year treasury bond paying 4.625% interest.
Item 2 is a 10 year Treasury Inflation Protected Security (TIPS) paying 2.125% interest.

TIPS offers protection against inflation, the regular bond does not.
Thanks. That makes sense. They do not mark it clearly that it is a TIPS.
 
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