What is a U.S. Savings Bond?

A U.S. Savings Bond is a government-backed investment that is purchased at a specific price, which may differ from its final value upon maturity. These bonds are designed to encourage saving and are generally issued at a discount to their face value. When they mature, the bondholder receives the full face value. The nature of these bonds typically involves a fixed maturity period, meaning they reach full value after a defined time frame, making option C the most relevant description.

Understanding that U.S. Savings Bonds grow in value over time and are issued with set maturity dates helps clarify their purpose and the process involved in purchasing and redeeming them. The bonds are available to individuals rather than just businesses, making the other choices less accurate. As a result, the correct answer emphasizes the structured nature of U.S. Savings Bonds as investments that mature over specific periods.