Question

Which are the two unique features of a US federal government bond?

Answer 1

US federal government bonds have two unique features: safety and long-term maturity.

Step-by-step explanation:

Two unique features of a US federal government bond are:

1. Safety: US federal government bonds are considered to be the safest investment globally. The US government has consistently made payments on its bonds for over two centuries, making them a low-risk investment. They are often purchased even when they are being sold at low interest rates.
2. Long-term maturity: US federal government bonds have long-term maturities, ranging from 2-30 years. They can be issued as Treasury notes or Treasury bonds, with Treasury notes having a maturity date of 2-10 years, and Treasury bonds having a maturity date of more than 10 years up to 30 years.