Final answer:
Money market instruments, particularly Treasury bills (T-bills), have maturities of 1 year or less, are sold at a discount, and do not pay periodic interest.
Step-by-step explanation:
The financial instruments described as having maturities of 1 year or less, which do not pay interest but are sold at a discount, are typically found in the money market. Money market instruments such as Treasury bills (T-bills) are short-term debt securities issued by the government. These instruments are sold at a discount from their face value and do not pay periodic interest. Instead, the interest is implied in the difference between the purchase price and the amount received at maturity. They are considered to be safe investments due to their high liquidity and low risk of default, as they are backed by the government.