Treasury notes are investment options that:

• A. Mature in more than 10 years.
• B. Mature in one to ten years and pay interest semiannually.
• C. Mature in 20 years.
• D. Are issued in denominations of $1,000 to $100,000.

Answer: (B)

Treasury notes are government securities with intermediate maturities and fixed interest paid semiannually. The crucial point is their time horizon: they mature within a decade and make coupon interest payments twice a year. That combination - up to ten years to maturity and semiannual interest - is what defines notes. Longer maturities describe Treasury bonds (and even longer-term securities), so statements about maturities like more than ten years or specifically twenty years don’t apply to notes. Denomination details exist, but they aren’t the defining feature for distinguishing notes from other Treasuries; the key characteristics are the maturity window and the regular semiannual interest.