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Income Beginner: Introduction to Government Bonds

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1.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
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.
Treasury note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.
4.
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.
5.
Government bonds can mature in as many as _______ years.
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Fifty. Government bonds can actually last fifty years.
6.
________ 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.