149. CSO: 2B5c LOS: 2B5n Which one of the following statements best characterizes U.S. Treasury bills? a. They have no coupon rate, no interest rate risk, and are issued at par. b. They have an active secondary market, one to twenty-four month maturities, and monthly interest payments. c. They have an active secondary market, the interest received is exempt from federal income tax, and there is no interest rate risk. d. They have no coupon rate, no default risk, and interest received is subject to federal income tax.

2B5N WHICH ONE OF THE FOLLOWING STATEMENTS BEST CHARACTERIZES U.S. TR...

CMA EXAM SUPPORT PACKAGE 2

149.

CSO: 2B5c

LOS: 2B5n

Which one of the following statements best characterizes U.S. Treasury bills?

They have no coupon rate, no interest rate risk, and are issued at par.

They have an active secondary market, one to twenty-four month maturities, and

monthly interest payments.

They have an active secondary market, the interest received is exempt from

federal income tax, and there is no interest rate risk.

They have no coupon rate, no default risk, and interest received is subject to

federal income tax.