Which one of the following statements best characterizes U.S. Treasury bills?

They have no coupon rate, no interest rate risk, and are issued at par.
They have an active secondary market, 1- to 24-month maturities, and monthly interest payments.
They have an active secondary market, the interest received is exempt from federal income tax, and there is no interest rate risk.
They have no coupon rate, no default risk, and interest received is subject to federal income tax.

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