Question

Risk vs. return reading quiz question 1 of 10: us savings bonds:
a.are purchased for face value and pay interest above that amount
b.are worth face value at maturity
c.are risky investments

Answer 1

Answer:

b. are worth face value at maturity

Explanation:

Option A - US savings bonds' can be purchased for face value, but the bondholder cannot pay interest above that amount. Therefore, it is not correct.

Option C - US bonds or bills cannot be a risky investment because the government is subsidizing. So, it is also false.

Option B - It can be paid at maturity with a face value. That is why it is the correct answer.