A government-issued, interest-bearing or discounted security. It obligates the government to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. Government bonds are backed by the full faith and credit of the U.S. Government, which, if necessary, can print money to make payments.
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.