SIE practice questionmediumTreasury Securities - T-Notes and T-Bonds
Which of the following is TRUE of both Treasury notes and Treasury bonds?
- AThey are callable at any time
- BThey are issued at a discount only
- CThey have maturities under one year
- DThey pay interest semiannually✓ Correct answer
Explanation
Why D — They pay interest semiannually
Both T-notes and T-bonds pay interest semiannually. They can be issued at par, premium, or discount, have maturities over 1 year, and are not generally callable.
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