If you were to buy a $10,000 Treasury note on a noncompetitive bid that matures in seven years at 5% interest,what would the interest payments be,and how often would you receive interest?

Question

Quizplus · Accepted Answer

Treasury notes pay interest every 6 months at a fixed rate, and for a $10,000 note at 5% interest per year, the semi-annual interest payment would be $250 ($10,000 * 5% = $500 per year, divided by 2).

If You Were to Buy a $10,000 Treasury Note on a Noncompetitive