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1.
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.
2.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
3.
What is the range of maturities of agency bonds?
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One to fifty years. Agency bonds have a very wide range.
4.
Government bonds can mature in as many as _______ years.
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Fifty. Government bonds can actually last fifty years.
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 were collateralized mortgage obligations introduced to the market?
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To reduce the prepayment risks that arise from refinanced mortgages. Investors can reduce their risks by choosing different maturities to invest in.