Marketable Securities Offered by Treasury		
Maturity	Marketable Security	Description
Nominal Securities
1 year or less	Bills	"Bills are typically sold at a discount from their face value. A $1,000 bill might sell at auction for $980. When the bill matures, the investor receives the face value, in this case $1,000. The difference ($20) equals the interest earned. "
More than 1 to 10 years Notes	"Notes are sold below, at, or above face value. They pay interest every six months until they mature, at which time the investor is paid the face value. "
More than 10 to 30 years Bonds	"Bonds are sold below, at, or above face value. They pay interest every six months until they mature, at which time the investor is paid the face value."
Inflation adjusted securities
5 to 30 years	Treasury Inflation Protected Securities (TIPS)	"Principal increases with inflation and interest is applied to the adjusted principal, so interest payments rise with inflation. When TIPS mature, an investor is paid the inflation adjusted principal. Should there be deflation, the principal decreases but not below the original face amount."
Source: Department of the Treasury.