Which of the following statement concerning Treasury bonds is true?

Question

Quizplus · Accepted Answer

Treasury bonds are indeed priced and sold at auction, which determines their yield and price in the market. Interest on Treasury bonds is paid semi-annually, not at maturity, making option B incorrect. Treasury bonds are considered among the safest investments since they are backed by the full faith and credit of the U.S. government, making option C incorrect. Lastly, Treasury bonds typically have lower interest rates than comparable municipal bonds because the interest from Treasury bonds is taxable at the federal level, while interest from most municipal bonds is exempt from federal taxes, making option D incorrect.

Which of the Following Statement Concerning Treasury Bonds Is True