Which of these Treasury securities is ordered correctly from shortest to longest maturities?

The correct sequencing of Treasury securities from shortest to longest maturities begins with Treasury bills, followed by Treasury notes, and finally Treasury bonds. This order reflects their respective maturities, where bills have terms ranging from a few days to one year, notes extend from two to ten years, and bonds have maturities exceeding ten years, often up to thirty years.

Choosing bills first encompasses the shorter-term investment options, which are considered the most liquid and are sold at a discount, while interest is paid at maturity. Notes follow, providing a medium-term investment with fixed interest that is paid out semiannually. Finally, bonds represent the longest-term investment, allowing for potential higher interest payments due to the extended risk duration.

This understanding is crucial for investors who need to align their investment strategies based on maturity lengths and associated risks. Recognizing the correct order helps clarify how each security functions within the larger context of fixed-income investments.