Treasury bonds are:

Question

Treasury bonds are:

Quizplus · Accepted Answer

Treasury bonds are typically issued as coupon bonds, which means they pay interest in the form of regular coupon payments.

Answer: B 
 Treasury bonds are considered to be virtually risk-free because they are backed by the full faith and credit of the U.S. government, making default extremely unlikely.

Answer: C 
 Treasury bonds are often preferred by high-income individuals because they offer tax advantages. While their interest income is subject to federal taxes, it is exempt from state and local taxes, making them particularly attractive to investors in high-tax states.

Answer: D 
 Treasury bonds are issued directly by the U.S. Department of Treasury, making them the safest and most secure type of government bond available.

Answer: E 
 This statement is false. Treasury bonds are issued throughout the year, not just on the first day of the fiscal year.

Treasury Bonds Are