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1 FINANCE MCQS

Treasury bonds and notes pay interest in the form of ____________?

  • LIBOR rate monthly
  • Coupon interest monthly
  • Coupon interest semiannually
  • Coupon interest annually
Correct Answer: C. Coupon interest semiannually

Detailed Explanation

Treasury bonds and notes pay interest in the form of coupon interest semiannually, meaning investors receive interest payments twice a year. This is standard for U.S. Treasury securities.

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