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Bonds 108: Introduction to Government Bonds

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1.
Which of the following agencies does not issue mortgage-backed securities?
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The US Post Office. The others were created for mortgage purposes.
2.
Investors in collateralized mortgage obligations choose interest and principal slices based on their desired ________.
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Maturities. They invest according to the bonds' maturities.
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.
How do Treasury notes differ from Treasury bonds?
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Their maturities. Their maturities last from one to ten years, while those of Treasury bonds last longer than ten years.
5.
On _______bonds, the owner can defer taxes on interest until the bond is redeemed.
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Series EE. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.
6.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.