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Bonds 108: Introduction to Government Bonds

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1.
Treasury bond maturities can last as long as ________ years.
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Thirty. Thirty years is the maximum maturity.
2.
Treasury note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.
3.
Many investors consider government bonds the safest of all bonds because _______.
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They are backed by the credit of the US government. The US government is considered to have the best ability to repay bonds and bond interest.
4.
What is used for collateral for collateralized mortgage obligations?
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Pools of mortgages. These pools back CMOs in the event of default.
5.
________ are redeemed by the US government rather than sold on exchanges.
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Non-marketable US bonds. They are called "non-marketable" because they cannot be sold on markets, and exchanges are markets.
6.
Why do US government agencies sell bonds?
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To raise money for their operations. Agencies need this money to do their work for the public.