Newly issued Treasuries can be purchased at auctions held by the government, while previously issued bonds can be purchased on the secondary market. Both types of orders can be placed through Fidelity.* Investors in Treasury notes (which have shorter-term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment. The coupon rate is fixed at the time of issuance and is paid every six months. Other Treasury securities, such as Treasury bills (which have maturities of one year or less) or zero-coupon bonds, do not
pay a regular coupon. Instead, they are sold at a discount to their face (or par) value; investors receive the full face value at maturity. These securities are known as Original Issue Discount (OID) bonds, since the difference between the
discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.
Which is better Fidelity Government Money Market Fund or Treasury money market fund?Fidelity U. S. Treasury money market fund is the safest of the lot while Fidelity U. S. Government Reserves and Fidelity Government Money Market Fund are a close second. Money market funds investing in commercial paper or debt issued by municipalities tend to carry a bit more risk.
How safe Is Fidelity Government Money Market Fund?You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Which is better SPAXX or Fdrxx?Like SPAXX, FDRXX is another U.S. government money market fund. For all intents and purposes, it is basically an older, more expensive version of SPAXX. Their holdings are nearly identical and they have the same yield and the same historical returns.
What is a fidelity Treasury money market fund?Fidelity Treasury Money Market Fund (FZFXX)
Seeks as high a level of current income as is consistent with the preservation of capital and liquidity. Normally invests at least 99.5% of the fund's total assets in cash, U.S. Treasury securities and/or repurchase agreements for those securities.
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