A U.S.Treasury security that pays a fixed coupon and has an initial maturity of 2 to 10 years is called a:
A) TIPS.
B) Treasury bill.
C) Treasury bond.
D) Treasury note.

Question

Quizplus · Accepted Answer

A Treasury note is a U.S. Treasury security that pays a fixed coupon and has an initial maturity of 2 to 10 years. TIPS (A) stands for Treasury Inflation-Protected Securities, which are bonds that are indexed to inflation. Treasury bills (B) are short-term U.S. Treasury securities with a maturity of one year or less. Treasury bonds (C) are U.S. Treasury securities that have a maturity of more than 10 years.

A USTreasury Security That Pays a Fixed Coupon and Has an an Initial