Government Bonds
Which Treasury security is sold at a discount and pays no periodic interest?
Treasury bills (T-bills) are sold at a discount from face value and pay no periodic interest. The investor's return is the difference between the purchase price and the par value received at maturity. T-notes, T-bonds, a
Complete Analysis & Legal Rationale
Treasury bills (T-bills) are sold at a discount from face value and pay no periodic interest. The investor's return is the difference between the purchase price and the par value received at maturity. T-notes, T-bonds, and TIPS all pay semi-annual interest.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Primary reference for Treasury bills/notes/bonds/STRIPS characteristics (verify current Treasury materials).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.