Question

U. S. Treasury bonds: A. Are highly illiquid. B. Are quoted as a percentage of par. C. Are quoted at the dirty price. D. Pay interest that is federally tax-exempt. E. Must be held until maturity.

Answer 1

Answer: The correct answer is B). Are quoted as a percentage of par.

Explanation:

U.S Treasury bonds are fixed income government securities that earn interest until maturity. It's expressed as a percentage of par value. A bond quote above 100 means the bond is trading above par.

Treasury bonds have a trades extensively and have a maturity date of 10 - 30 years.

Answer 2

The correct answer is letter "B": Are quoted as a percentage of par.

Step-by-step explanation:

Treasury Bonds (T-Bonds) are marketable securities issued by the U.S. government, available in one (100) hundred dollars increments. Bonds have a maturity period of 10 to 30 years, with the most frequent being 30. Interest is charged every six months, at the state level is tax-free, but at the federal level taxable.

T-bonds are sold in an auction, which determines the bond's price and yield. Bonds are quoted as a percentage of par value, taking by reference the principal.