SIE Exam Question 734: Answer and Explanation

Question: 734

Which of the following are characteristics of Series EE bonds?

(1) They may be purchased for an amount equal to one-half of face value.

(2) They may be purchased for a minimum price of $25 for a $50 bond.

(3) The U.S. Treasury guarantees that an EE bond's value will double after 10 years.

(4) They may be purchased for a maximum price of $5,000 for a $10,000 bond.

• A. (1) only
• B. (1), (2), and (4) only
• C. (2), (3), and (4) only
• D. All of the above are correct.

Correct Answer: B

Explanation:

Series EE bonds may be purchased for an amount equal to one-half of face value. The minimum price is $25 for a $50 bond, and the maximum price is $5,000 for a $10,000 bond. At a minimum, the U.S. Treasury guarantees that an EE bond's value will double after 20 years.