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Bonds 108: Introduction to Government Bonds

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1.
Treasury notes are sold through auctions.
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True. They are sold this way, using bids.
2.
Why does the US government sell bonds?
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To fund its programs and meet its expenses. The US government often finds it useful to seek funds from the public.
3.
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.
4.
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.
5.
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.
6.
Treasury bond maturities can last as long as ________ years.
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Thirty. Thirty years is the maximum maturity.