They track CD rates reasonably closely. Treasury Bonds are longer-term obligations of the government. They also carry no credit risk, but there is a substantial capital risk as interest rates change prior to redemption. An existing bond's value changes inversely as interest rates change in the economy. We will talk lots more about bonds later.
Commercial bonds are long-term debts issued by corporations.
They carry both a default or credit risk, and a capital risk as interest rates change. Commercial Bonds represent long-term debts of corporations. Bonds are generally issued with a maturity date, at which time they are redeemed for the face amount. While a commercial bond may default and become worthless, it can never be worth more than the face amount at maturity. The corporation has no other obligation other than to pay the interest and principal upon maturity.