Income Beginner: Introduction to Government Bonds

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1.
Government bonds can mature in as many as _______ years.
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Fifty. Government bonds can actually last fifty years.
2.
What is the range of maturities of agency bonds?
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One to fifty years. Agency bonds have a very wide range.
3.
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.
4.
Treasury notes are sold through auctions.
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True. They are sold this way, using bids.
5.
Treasury bonds are sometimes sold through auctions.
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True. When this happens, their interest rates may change from the original amounts.
6.
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.