Series 7 practice questioneasyDebt Securities — US Government — Treasury Notes
Treasury notes have original maturities of:
- ALess than 1 year
- B2 to 10 years✓ Correct answer
- C20 to 30 years
- DExactly 5 years only
Explanation
Why B — 2 to 10 years
Treasury notes (T-notes) are intermediate-term government securities with original maturities ranging from 2 to 10 years. They pay semi-annual fixed-rate interest (coupon payments) and return par value at maturity. T-notes are issued in $100 increments and are highly liquid, trading actively in the secondary market. Their interest is exempt from state and local income taxes.
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