Bonds are issued with different times to maturity and can be group into either short term or long term bonds. The time to maturity for short-term bonds is usually less than a year and these bonds are therefore considered highly liquid. Bonds usually pay a rate of interest (Coupon Bond), but there are also bonds that don't pay any interest until the maturity date (Zero-coupon Bond). Bonds can be traded on capital markets. The price of the bond is inversly related to its interest rate and will reflect a liquidity, as well as a risk premium. Longer term bonds (10, 20, 30, 50 years) also pay a real rate of interest plus a liquidity premium. Bonds issued by the US treasury are considered risk free, bonds issued by other countries or corporations however usually pay a risk premium. The liquidity