Products & Their RisksQuestion 26 of 398
Interest earned on U.S. Treasury notes and bonds is paid to investors:
a.Monthly
b.Semiannually (twice per year)
c.Only at maturity
d.Quarterly
Explanation
Treasury notes and bonds pay a fixed coupon semiannually, meaning twice per year, until maturity. They do not pay monthly or quarterly, and only T-bills (zero-coupon) pay their return solely at maturity.
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