Government Bonds
Which U.S. Treasury security does NOT pay periodic interest?
Treasury bills (T-bills) are sold at a discount to face value and do not pay periodic interest. The investor's return is the difference between the discounted purchase price and the face value at maturity. T-notes, T-bon
Complete Analysis & Legal Rationale
Treasury bills (T-bills) are sold at a discount to face value and do not pay periodic interest. The investor's return is the difference between the discounted purchase price and the face value 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:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Primary reference for Treasury bills/notes/bonds/STRIPS characteristics (verify current Treasury materials).
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.