SIE practice questionmediumTreasury Securities - T-bonds
U.S. Treasury bonds are distinguished by which of the following features?
- AMaturities of 1 year or less
- BMaturities of more than 10 years✓ Correct answer
- CNo periodic interest payments
- DIssued by municipal governments
Explanation
Why B — Maturities of more than 10 years
Treasury bonds mature in more than 10 years and pay semiannual interest. T-bills mature in one year or less, and municipals are issued by state/local governments.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Debt Securities questions
- An investor wants to minimize the impact of interest rate changes on the value of their bond portfolio. They should…
- A bond rated below BBB/Baa is considered:
- A callable bond will generally offer a ______ yield than a similar noncallable bond.
- Which issuer's bonds carry an explicit U.S. government guarantee?
- Corporate and municipal bonds calculate accrued interest on which basis?
- Treasury Inflation-Protected Securities (TIPS) protect investors from which risk?
- Which agency bond is directly backed by the full faith and credit of the U.S. government?
- A 20-year bond is callable after 10 years. If interest rates fall and the bond is called at year 10, which yield will…