Does the US treasury pay compound Interest ?

Thomass1

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The Treasury says it pays 1.17% interest on 3 year bonds

Doe this mean Amount you invest say 10,000


10,000 times 1.17 to the power of 3

or does it mean

10,000 * 1.17
 
I expect, like most bonds, the interest is paid out periodically (once, twice a year). Therefore it would not compound. Unless you reinvested the interest of course (less commission)
 
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