SIE practice questionmediumT-Bills, T-Notes, T-Bonds, TIPS
Which U.S. Treasury security is issued at a discount and does not pay periodic interest?
- ATreasury note
- BTreasury bill✓ Correct answer
- CTreasury bond
- DTIPS
Explanation
Why B — Treasury bill
Treasury bills are short-term securities sold at a discount and mature at face value. Treasury notes, bonds, and TIPS pay periodic interest (coupons).
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