TREASURY NOTES AND BONDS

Treasury Notes and Bonds,* like Treasury Bills, are obligations of the U.S. Treasury that pay the bearer a fixed sum at the maturity date. Maturities range from two to 30 years, with the length of the maturity at issuance determining whether the instrument is a note or bond.

Terms and Structures

• Maturity
  Treasury Notes are issued with maturities of two to 10 years, while Treasury Bonds are issued with maturities greater than 10 years.
• Issued
  Treasury Notes and Bonds are offered on a regular auction schedule, as well as on a continuing basis in the secondary market.
• Form
  Treasury Notes and Bonds are purchased in book entry form and can be held in Wachovia's Institutional Trust Services Custody Department or delivered per instructions.
• Quoted
  On a dollar price basis, with fractional dollars represented in terms of 32nds, e.g. a price quotation of 100.16 means 100 16/32 or $100.50 per $100 of maturity value.
• Rate Structure
  Yields are determined by current interest rates and vary with market conditions, maturities, and transaction size.
• Interest
  Interest is paid twice a year. If held in safekeeping at Wachovia, interest will be credited to the customer's account or a check will be mailed directly to the customer.
• Denominations
  Treasury Notes with two to three year maturities are available in minimum amounts of $5,000 with $1,000 increments thereafter. Treasury Notes and Bonds maturities from five to 30 years are available in minimum amounts of $1,000 with $1,000 increments thereafter.
• Security
  As direct obligations of the U.S. Government, Treasury Notes and Bonds are considered one of the most secure investment vehicles available. Although the security will mature at par value, the interim valuation will vary with general interest rate levels. Thus, should you decide to sell a Treasury Note or Bond prior to its maturity, the price you receive may be less than, greater than, or equal to the price you paid for it, depending upon current interest rates.
• Tax Status
  Interest from Treasury Notes and Bond is subject to federal income tax, but may be exempt from certain state income taxes.

Corporate & Institutional Customer Service