What is a common feature of Treasury bonds?

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Treasury bonds are characterized by their long maturities, which typically range from 10 to 30 years. A key feature of these bonds is that they pay periodic interest, known as coupon payments, usually every six months. This interest payment structure provides a reliable income stream for investors over the duration of the bond. Given their long-term nature, Treasury bonds are often sought by those looking for safe, steady income over many years, making option C the correct choice.

In contrast, Treasury bonds are not limited to small denominations, nor do they have short maturities, as those attributes pertain to other types of Treasury securities, like Treasury bills (which are short-term). Additionally, Treasury bonds do not have a feature where they are automatically reinvested into the government; rather, investors typically receive their interest payments directly.

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