The difference between a Treasury bill and a Treasury bond is that the bill

Question

Quizplus · Accepted Answer

The best choice is E because Treasury bills are short-term securities with maturity dates of one year or less, whereas Treasury bonds have longer maturity dates ranging from 10 to 30 years. The other choices are incorrect: A is false as both bills and bonds can be purchased by anyone, B is false as both bills and bonds are backed by the full faith and credit of the U.S. government, C is false as typically, Treasury bonds pay higher interest rates than bills due to their longer maturity, and D is false as both bills and bonds pay interest, although bills may have lower yields due to their shorter maturity.

The Difference Between a Treasury Bill and a Treasury Bond