Income Beginner:
Introduction to Government Bonds
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1.
On _______bonds, the owner can defer taxes on interest until the bond is redeemed.
Choose wisely. There is only one correct answer.
Series EE
Series HH
Treasury
Series EE. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.
2.
Government bonds can mature in as many as _______ years.
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Two
Ten
Fifty
Seventy-five
Fifty. Government bonds can actually last fifty years.
3.
What is the range of maturities of agency bonds?
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One month to one year
Ten to thirty years
One to fifty years
Ten to seventy-five years
One to fifty years. Agency bonds have a very wide range.
4.
Treasury bonds are sometimes sold through auctions.
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True
False
True. When this happens, their interest rates may change from the original amounts.
5.
Investors in collateralized mortgage obligations choose interest and principal slices based on their desired ________.
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Yields
Income
Maturities
Maturities. They invest according to the bonds' maturities.
6.
Treasury note maturities can last as long as ________ years.
Choose wisely. There is only one correct answer.
Five
Ten
Thirty
Forty
Ten. Ten years is the maximum maturity.
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