HOFIS 9 Flashcards
1
Q
What kinds of taxes are treasury securities subject to?
A
Federal taxes, but not state and local taxes
2
Q
Types of treasury securities by maturity
A
Bills: one year or less to maturity
Notes: maturities b/w 2 and 10 years
Bonds: maturities greater than 10 years
3
Q
How are treasury securities sold in the primary market?
A
through sealed-bid, single price auctions.
4
Q
Types of treasury securities by trading activity in secondary market
A
1 on-the-run securities: most recently issued securities of a given maturity (70% of trading activity)
- off-the-run: older securities (most outstanding. 24% of trading activity)
- when-issued: securities that have been announced for auction but not issued yet (6% of trading volume)
