Treasury notes, which are guaranteed by the full faith and credit of the U.S. Government, are coupon-bearing securities exempt from state and local taxes, with initial maturities ranging between one and ten years. They pay accrued interest twice a year and repay principal at maturity. You can buy notes with two- and three-year maturities for a minimum of $5,000 and in multiples of $1,000 thereafter. Notes with four- to ten-year maturities are sold for a minimum and multiple of $1,000.