____ are sold on a discount basis with the gain at maturity representing the interest earned.

Question

Quizplus · Accepted Answer

Treasury bills are sold at a discount to the face value and mature at face value, representing the interest earned. Both Treasury notes and bonds pay interest coupons periodically, which are not reflected in their discounted price. Federal agency bonds may or may not be sold at a discount, and their gain at maturity may not represent only the interest earned.

____ Are Sold on a Discount Basis with the Gain