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Income Beginner:
Introduction to Government Bonds
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1.
How do Treasury notes differ from Treasury bonds?
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Their maturities
Their interest rates
Their collateral
Their issuers
Their maturities. Their maturities last from one to ten years, while those of Treasury bonds last longer than ten years.
2.
On _______bonds, the owner can defer taxes on interest until the bond is redeemed.
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Series EE
Series HH
Treasury
Series EE. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.
3.
Government bonds can mature in as many as _______ years.
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Two
Ten
Fifty
Seventy-five
Fifty. Government bonds can actually last fifty years.
4.
What is the range of maturities of agency bonds?
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One month to one year
Ten to thirty years
One to fifty years
Ten to seventy-five years
One to fifty years. Agency bonds have a very wide range.
5.
Treasury bond maturities can last as long as ________ years.
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Ten
Twenty
Thirty
Fifty
Thirty. Thirty years is the maximum maturity.
6.
What is used for collateral for collateralized mortgage obligations?
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Portfolios of securities
Real estate
Nothing
Pools of mortgages
Pools of mortgages. These pools back CMOs in the event of default.
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