Which of the following are true statements about T-notes?
I. T-notes are typically issued in denominations of $1 000 000
II. Income earned on T-notes is exempt from all taxes
III. T-notes are issued at a discount
A)I only
B)I and II only
C)I and III only
D)I, II and III

Question

Quizplus · Accepted Answer

I: This statement is true. T-notes are typically issued in denominations of $1,000, but can be bought and sold in smaller denominations on the secondary market.
II: This statement is false. The income earned on T-notes is subject to federal income tax, but exempt from state and local income taxes.
III: This statement is false. T-notes are not issued at a discount, but rather at their face value, and pay interest semi-annually.

Which of the Following Are True Statements About T-Notes