Which of the following is an original issue discount obligation?
A. GNMA certificate
B. Treasury Bill
C. US government bond
D. FNMA bond

The correct answer is letter "B": Treasury Bill.

Explanation:

An Original Issue Discount or OID is the amount below par value at which a bond or other debt instrument is issued. To fund its activities, the U.S. government issues a series of debt obligations. Those with the shortest maturity are called Treasury Bills or T-Bills.

The government makes no regular payments to the holder of the T-Bill. Instead, T-bills are sold at a price below face value leading to a profit on the maturity date for the holder. The profits are taxable as interest income.

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