Final answer:
The primary difference between treasury notes and bonds is the maturity period, with notes having a maturity period of 2-10 years and bonds having a maturity period of more than 10 years up to 30 years. The interest rate may also differ between the two, with notes having a lower interest rate. The issuer of both treasury notes and bonds is the federal government. The correct option is 1.
Step-by-step explanation:
The primary difference between treasury notes and bonds is the maturity period. Treasury notes have a maturity period of 2-10 years, while treasury bonds have a maturity period of more than 10 years up to 30 years.
Additionally, the interest rate may also differ between treasury notes and bonds. The interest rate on treasury notes is typically lower compared to treasury bonds, as bonds have a longer maturity period.
Furthermore, the issuer of treasury notes and bonds is the same, which is the federal government. However, the face value of treasury notes and bonds can vary.
Hence, Option 1 is correct.