BUSINESS ADMINISTRATION
BANKING AND INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures.
Detailed explanation-2: -Treasury bonds (T-bonds) are government debt securities issued by the U.S. Federal government that have maturities greater than 20 years. T-bonds earn periodic interest until maturity, at which point the owner is also paid a par amount equal to the principal.
Detailed explanation-3: -Treasury bonds (T-Bonds) are long-term bonds having a maturity between 10 to 30 years. T-Bonds give interest or coupon payments semi-annually and have $1, 000 face values. The bonds help to offset shortfalls in the federal budget.
Detailed explanation-4: -Government bonds are long term investment bonds where the maturity is ranging from 5 years – 40 years. Hence, the bond might lose its value over this period.