U.S. treasury bonds are:

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The question asks: 'U.S. treasury bonds are:' followed by four options. 
Option a: 'Amortising financial instruments' — This is not accurate for U.S. Treasury bonds in typical classification. Treasury bonds are issued with fixed interest payments and face value at maturity, not primarily described as amortising instruments, which usually refer to assets that reduce in value or debt over time through periodic repayments.
Option b: 'Coupon financial instruments' — This is correct in the conventional sense. U.S. Treasury bonds pay a fixed coupon rate semiannually until maturity, making them coupon-bearing instruments. The coupon represents the periodic interest payment to the holder, which characterizes these bonds as coupon instruments.
Option c: 'Discounted financial instruments' — Treasury bonds are generally issued at par or at a price close to par and pay periodic coupons; they are not primarily described as discounted instruments, which would emphasize purchase at a discount to par and yield to maturity from that discount. While their market price can deviate from par, the standard classification emphasizes coupon payments rather than mere discount features.
Option d: 'Dividend paying financial instruments' — Bonds do not pay dividends. Dividends are associated with equity securities (stocks), not with debt instruments like Treasury bonds, which pay interest via coupons and return principal at maturity.
In summary, the defining feature of U.S. Treasury bonds is the periodic coupon payments to bondholders, which makes option b the appropriate characterization. The other options either mischaracterize the payment structure (no dividends, not primarily discounted) or confuse the instrument type (not typically described as amortising in this context).

BFX3301 - S2 2025 Week 10 - Pre-class test (10 minutes) - 3%

U.S. treasury bonds are:

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