Future Business Leaders of America (FBLA) Securities and Investments Practice Test

Which of the following bonds matures in a time frame of 10-30 years?

1. Treasury bills

2. Treasury notes

3. Treasury bonds

4. Municipal bonds

The correct answer is: Treasury bonds

The correct answer is Treasury bonds, which are long-term securities issued by the U.S. Department of the Treasury. These bonds have maturities that range from 10 to 30 years, making them suitable for investors seeking a longer-term investment option. The interest payments on Treasury bonds are typically made every six months, and they are considered very low-risk because they are backed by the full faith and credit of the U.S. government. Treasury bills, on the other hand, have shorter maturities of up to one year, and Treasury notes have maturities ranging from two to ten years. Municipal bonds can have varying lengths but are often issued with different terms. Understanding the specific maturity periods is essential in distinguishing among these types of government securities.