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Income Beginner: Introduction to Government Bonds

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1.
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.
2.
Series Electronic EE savings bonds are bought at one half their face value.
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False. They are bought at their full face amounts. Paper EE bonds were bought at one half their face value, but they are no longer offered.
3.
How do Treasury notes differ from Treasury bonds?
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Their maturities. Their maturities last from one to ten years, while those of Treasury bonds last longer than ten years.
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.
Treasury bond maturities can last as long as ________ years.
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Thirty. Thirty years is the maximum maturity.
6.
Government bonds can mature in as many as _______ years.
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Fifty. Government bonds can actually last fifty years.