Final answer:
The maximum maturity for a Treasury note is 10 years. Treasury notes are intermediate-term loans with maturities that can range from 2 to 10 years, offering a safe investment backed by the U.S. government.
Step-by-step explanation:
The maximum maturity for a Treasury note is 10 years. Treasury notes, or T-notes, are intermediate-term loans issued by the U.S. government that have maturities ranging from 2 to 10 years. They are distinct from T-bills, which are short-term securities with maturities up to one year, and T-bonds, which are long-term bonds with maturities ranging from more than 10 years up to 30 years.
T-notes and T-bonds come in denominations ranging from $1,000 to $5,000, and they are considered among the safest financial assets because they are backed by the full faith and credit of the United States government. Investors often choose these securities due to their reliability and the government’s low default risk.