Certified Management Accountant Practice Exam 2025 - Free CMA Practice Questions and Study Guide

Question: 1 / 430

What is the typical maturity period for Treasury Bonds?

Five to ten years

One to ten years

Ten years or more

Treasury Bonds are a type of government debt security issued by the U.S. Department of the Treasury with a maturity period typically of ten years or longer. Their design aims to fund government spending and address national debt. Investors purchase these bonds with the expectation that they will receive regular interest payments over the life of the bond, along with the principal amount returned at maturity.

In contrast, the other maturity ranges mentioned in the choices correspond more closely to different types of Treasury securities. For example, Treasury Notes have a maturity of one to ten years, and Treasury Bills are short-term securities with maturities ranging from a few days up to one year. Therefore, the defining characteristic of Treasury Bonds is their longer maturity term, which is why identifying a maturity of ten years or more is the correct choice in this context.

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Two to five years

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