SIE practice questionmediumT-bills, T-notes, T-bonds
Which characteristic is unique to Treasury bills (T-bills) compared to Treasury notes and bonds?
- AThey have maturities over 10 years.
- BThey pay semiannual interest.
- CThey are sold at a discount with no stated interest rate.✓ Correct answer
- DThey are exempt from federal income tax.
Explanation
Why C — They are sold at a discount with no stated interest rate.
T-bills are issued at a discount and pay no interest, unlike notes and bonds. All Treasuries pay federal tax; maturities and interest differ among types.
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