SIE (Securities Industry Essentials) Practice Exam

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When is interest on Treasury notes paid?

  1. Quarterly

  2. Annually

  3. Semiannually

  4. Monthly

The correct answer is: Semiannually

Treasury notes have a fixed interest rate, which is paid to the owner twice a year. This means that the interest is paid semi-annually, or every six months. Therefore, options A, B, and D are incorrect since they suggest that the interest is paid more or less frequently than twice a year.

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