SIE practice questionmediumTreasury notes
Which statement is TRUE regarding U.S. Treasury notes?
- AThey pay interest semiannually✓ Correct answer
- BThey are always issued at a discount
- CThey mature in one year or less
- DThey are callable by the Treasury
Explanation
Why A — They pay interest semiannually
Treasury notes pay semiannual interest and mature in 2-10 years. T-bills are issued at a discount for 1 year or less. Most Treasury notes are non-callable.
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