When a government bond matures, the governments has to pay it back with the prom

Question

When a government bond matures, the governments has to pay it back with the promised interest payments. There are different kinds of government securities based on different maturities. The Treasurey bill usually has the maturities between 3 months and 1 year. The Treasury notes usually have the maturities between 1 year and 10 years. And the Treasury bonds usually have the maturities between 10 years and 30 years. Then which of the following is true?




A. If the maturity of a government bond is 8 years, it is a Treasury bond.

B. The accumulation of all of these government bonds is called the gross public debt.

C. The accumulation of all of these government bonds is called the net public debt.

D. Only A and B.

E. Only A and C.

Explanation / Answer

The maturity of a Treasury bond is between 10 and 30 years, A is false The difference between net public debt and gross public debt is that gross debt includes all government bonds, and net debt is the gross debt minus assets B is therefore true, and C is false So the answer is B

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