Income Beginner: Introduction to Government Bonds

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1.
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.
2.
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.
3.
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.
4.
Why does the US government sell bonds?
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To fund its programs and meet its expenses. The US government often finds it useful to seek funds from the public.
5.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
6.
Treasury note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.