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Income Beginner: 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.
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.
3.
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.
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.
Government bonds can mature in as many as _______ years.
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Fifty. Government bonds can actually last fifty years.
6.
Treasury bonds are sometimes sold through auctions.
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True. When this happens, their interest rates may change from the original amounts.