Which of the following identifies the distinction between a U.S.Treasury bond and a Treasury note?
A) Bonds make coupon payments; notes do not.
B) Bills have default risk; bonds do not.
C) Bonds are priced in 32s; notes are not.
D) Bonds initially have more than 10 years until maturity; notes have fewer than 10 years initially.

Question

Quizplus · Accepted Answer

The main distinction between a U.S. Treasury bond and a Treasury note is their initial maturity. Bonds have an initial maturity of more than 10 years, while notes have an initial maturity of fewer than 10 years. Neither of the other options correctly describe the difference between bonds and notes.

Which of the Following Identifies the Distinction Between a U