SIE practice questioneasyTreasury Securities - T-Bills
Which Treasury security is always issued at a discount and does not pay periodic interest?
- ATreasury note
- BTreasury bill✓ Correct answer
- CTreasury bond
- DTreasury Inflation-Protected Security (TIPS)
Explanation
Why B — Treasury bill
Treasury bills are short-term government securities issued at a discount and mature at par, with no periodic interest payments. The others pay semiannual interest.
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