Government Bonds
Which Treasury security is sold at a discount and does NOT pay periodic interest?
Treasury Bills (T-Bills) are sold at a discount to face value and do not pay coupon interest. The investor's return is the difference between the purchase price and the face value received at maturity. T-Notes, T-Bonds,
Complete Analysis & Legal Rationale
Treasury Bills (T-Bills) are sold at a discount to face value and do not pay coupon interest. The investor's return is the difference between the purchase price and the face value received at maturity. T-Notes, T-Bonds, and TIPS all pay semiannual 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:
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described 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.