A Government Security Issued in Minimum Units of $100 with a 30-Year

question 42

Multiple Choice

A government security issued in minimum units of $100 with a 30-year maturity is called a:

• A)subordinated bond.
• B)Treasury bill.
• C)Treasury note.
• D)Treasury bonD.
• E)savings bond.

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Definitions:

Annual Interest Rate

The annual interest rate is the percentage of principal charged by the lender for the use of its money over one year.

Down Payment

An initial upfront partial payment for the purchase of expensive items/services such as a home or a car.

Annual Payments

Payments made once a year, often related to loans, leases, or insurance policies.

Lease

A contractual agreement where one party, the lessor, grants another party, the lessee, the right to use an asset for a specified period in exchange for payments.