<Dl> <Dd> This is the modern usage of "Treasury Note" in the U.S.; for the earlier meanings, see Treasury Note (disambiguation). </Dd> </Dl> <Dd> This is the modern usage of "Treasury Note" in the U.S.; for the earlier meanings, see Treasury Note (disambiguation). </Dd> <P> Treasury notes (or T - notes) mature in two to ten years, have a coupon payment every six months, and have denominations of $1,000 . In the basic transaction, one buys a $1,000 T - Note for $950, collects interest of 3% per year over 10 years, which comes to $30 yearly, and at the end of the 10 years cashes it in for $1000 . So, $950 over the course of 10 years becomes $1300 . </P> <P> T - Notes and T - Bonds are quoted on the secondary market at percentage of par in thirty - seconds of a point (n / 32 of a point, for n = 1, 2, 3, ...). Thus, for example, a quote of 95: 07 on a note indicates that it is trading at a discount: $952.22 (i.e., 95 + 7 / 32%) for a $1,000 bond . (Several different notations may be used for bond price quotes . The example of 95 and 7 / 32 points may be written as 95: 07, or 95 - 07, or 95'07, or decimalized as 95.21875 .) Other notation includes a +, which indicates 1 / 64 points and a third digit may be specified to represent 1 / 256 points . Examples include 95: 07 + which equates to (95 + 7 / 32 + 1 / 64) and 95: 073 which equates to (95 + 7 / 32 + 3 / 256). Notation such as 95: 073 + is not typically used . </P>

Are us treasury notes a capital market instrument