Question

A registered representative (RR) is recommending to his client a newly issued debt security backed by the U.S. government with a maturity of eight years. This security is most likely

Answer 1

Answer:

a debt instrument known as a Treasury note

Explanation:

Treasury note is a United States government debt security that has a fixed interest rate and maturity of between 1 to 10 years.

Treasury notes can have competitive bid or non competitive bid.

Competitive bid occurs when buyers determine yield they want, but they have to wait for approval by the government.

Non competitive bidding is when buyers accept the yield offered at auction.

In this scenario where a registered representative (RR) is recommending to his client a newly issued debt security backed by the U.S. government with a maturity of eight years. This is most likely treasury notes.