Income Beginner: Introduction to Government Bonds

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1.
________ are redeemed by the US government rather than sold on exchanges.
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Non-marketable US bonds. They are called "non-marketable" because they cannot be sold on markets, and exchanges are markets.
2.
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.
3.
Treasury note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.
4.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
5.
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.
6.
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.