Which One of the Following Statements Concerning Treasury Bonds Is

question 2

Multiple Choice

Which one of the following statements concerning Treasury bonds is correct?

• A) The coupon rate of a TIPS is adjusted periodically in response to changes in the rate of inflation.
• B) All Treasury securities are backed by the "full faith and credit" of the Government.
• C) Treasury bonds have maturity dates ranging from two to ten years.
• D) Interest earned on Treasury bonds is tax- exempt at the federal level.

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