Asked by
Salma Almansoori
on Oct 19, 2024
Verified
The primary difference between Treasury notes and bonds is ________.
A) maturity at issue
B) default risk
C) coupon rate
D) tax status
Treasury Notes
Intermediate-term U.S. government debt security with a maturity of 1 to 10 years and pays interest every six months.
Maturity at Issue
The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.
Default Risk
The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.
- Familiarize oneself with the attributes and types of bonds.
- Familiarize yourself with the concepts of bond pricing, yield, and rate of return.
Verified Answer
AF
Learning Objectives
- Familiarize oneself with the attributes and types of bonds.
- Familiarize yourself with the concepts of bond pricing, yield, and rate of return.