Which of the Following Is NOT True About EE Savings

question 3

Multiple Choice

Which of the following is NOT true about EE savings bonds?

• A) Interest payments are received annually but are tax deductible.
• B) About one in six Americans owns a savings bond.
• C) These are tax deferred investments.
• D) Paper bonds sell for one-half of their face value.

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Definitions:

Traded Stock

Shares of a company that are bought and sold in public markets, such as stock exchanges, representing ownership interests in the corporation.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date at a predetermined price.

Buy Back

The process by which a company repurchases its own shares from the marketplace, reducing the amount of outstanding stock.

Maturity

The time at which a financial instrument (such as a bond, loan, or investment) becomes due for payment or expires.