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.
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.
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.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.
5.
Treasury notes are sold through auctions.
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True. They are sold this way, using bids.
6.
What is the range of maturities of agency bonds?
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One to fifty years. Agency bonds have a very wide range.