Unlike most other types of bonds, typically borrowers pay back both principal and interest through monthly payments. (learnbonds.com)
Pros: The ability to generate higher income as rates rise and the fact that they should not fall in price if interest rates rise, much unlike many other types of bonds. (tradinginsights.schwab.acsitefactory.com)
That rate is often used as a basis of comparison for other types of bonds and interest rates. (edwardjones.com)