Interest is paid at maturity. These are notes of local agencies secured by a contract with federal agencies and by the pledge of the full faith and credit of the U.S. Government. They mature in periods of up to one year. There is a good secondary market for these. The rate is based on a yield basis.
Interest is paid at maturity.
And it is based on a 30 day month and a 360 day year. These are notes of states, municipalities, or political subdivisions. They usually mature in periods of 3 months to 1 year from the date of issue. There is a good secondary market for these. The rate is determined on a yield basis.