SIE practice questionmediumTreasury securities
Treasury bonds have which of the following characteristics?
- AShort maturities and pay interest at maturity
- BLong maturities and semiannual interest payments✓ Correct answer
- CAre always inflation-protected
- DHave no default risk or market risk
Explanation
Why B — Long maturities and semiannual interest payments
Treasury bonds mature in 10 to 30 years and pay semiannual interest. T-bills are short-term. Only TIPS are inflation-protected. Treasury bonds have no default risk, but do have market risk.
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