What type of income do Treasury bonds provide to investors?

What type of income do Treasury bonds provide to investors?

• A. Annual dividends
• B. Semiannual interest payments
• C. Quarterly dividends
• D. Monthly interest payments

Answer: (B)

Treasury bonds are long-term debt securities issued by the U.S. government that provide investors with a fixed income through semiannual interest payments. These bonds generally have maturities ranging from 10 to 30 years and pay interest every six months until maturity. This structure makes them a reliable investment option for those seeking predictable income over a long period. The semiannual payments are calculated based on the bond's coupon rate, which determines the amount of interest an investor will receive per period, leading to steady income throughout the life of the bond.

Treasury bonds are long-term debt securities issued by the U.S. government that provide investors with a fixed income through semiannual interest payments. These bonds generally have maturities ranging from 10 to 30 years and pay interest every six months until maturity. This structure makes them a reliable investment option for those seeking predictable income over a long period. The semiannual payments are calculated based on the bond's coupon rate, which determines the amount of interest an investor will receive per period, leading to steady income throughout the life of the bond.