Which U.S. Treasury security is known for having no periodic interest payments?

The U.S. Treasury security known for having no periodic interest payments is the Treasury Bill (often abbreviated as T-Bill). T-Bills are sold at a discount to their face value, meaning that investors purchase them for less than what they will be worth at maturity. The return for investors comes from the difference between the purchase price of the T-Bill and its face value, which is paid back at maturity. This structure eliminates the need for periodic interest payments, as the yield is effectively realized upon redemption when the bill matures.

In contrast, Treasury Notes and Bonds provide regular interest payments (semiannual for Notes and Bonds) throughout their life, making them different from T-Bills. Debentures typically refer to unsecured bonds issued by corporations and do not pertain specifically to U.S. Treasury securities, reinforcing that T-Bills are unique in their lack of periodic interest payments.