Government bonds are long-term securities issued by the state. Government bond have a maturity of over 2 years.
Government bonds provide income in the form of interest. Government bonds are one of the safest forms of investment available. The fact that government bonds are safe investments means that it also is a lower interest rate on government bonds compared to corporate bonds. It is often said that the interest rate on government bonds is the risk-free interest rate for different maturities.
Government bonds, risk-free interest rate instruments, financial instruments