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. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.
2.
Many investors consider government bonds the safest of all bonds because _______.
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They are backed by the credit of the US government. The US government is considered to have the best ability to repay bonds and bond interest.
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 note maturities can last as long as ________ years.
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Ten. Ten years is the maximum maturity.
5.
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.
6.
How often do Treasury bonds pay interest?
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Semi-annually. They pay interest twice per year.