The treasury bonds and notes pay the interest rate is classified as ________?
Correct answer: C. coupon interest semiannually
- A. LIBOR rate monthly
- B. coupon interest monthly
- C. coupon interest semiannually
- D. coupon interest annually
Explanation
U.S. Treasury notes and bonds normally pay coupon interest twice a year, so the payment frequency is semiannual. Annual and monthly payment choices do not describe the standard Treasury schedule.
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