SIE Exam Question 785: Answer and Explanation

Question: 785

All but which of the following are correct regarding Treasury notes?

• A. They are issued by the U.S. Treasury Department.
• B. They have maturities of 10 years or less.
• C. They make variable interest payments on a semiannual basis.
• D. They are taxed at the federal level only.

Correct Answer: C

Explanation:

Treasury notes are issued by the U.S. Treasury Department and have maturities of 10 years or less. They have fixed interest payments that are made semiannually to maturity, and they are taxed at the federal level only.