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Bonds 108: Introduction to Government Bonds

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1.
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.
2.
Treasury note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.
3.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
4.
________ 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.
5.
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.
6.
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.