Series EE bonds
A) pay the same rate of interest every year.
B) may be held for up to 30 years.
C) require the owner to pay federal income taxes each year on the appreciation.
D) are sold in bearer form.

Question

Quizplus · Accepted Answer

Series EE bonds can be held for up to 30 years before maturity, making them a good long-term investment option. A is incorrect, as the interest rate on Series EE bonds changes based on prevailing market rates. C is also incorrect, as the owner only pays federal income taxes upon redemption or maturity of the bond, not annually. D is incorrect, as Series EE bonds are not sold in bearer form and are registered to the owner.

Series EE Bonds