Answered: Treasury bills _____. a. are sold…

Treasury bills _____. a. are sold for exactly $10,000 b. pay no explicit interest c. are quoted in terms of yield to maturity d. have a stated interest rate

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 3SEQ

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Treasury bills _____.

	a.	are sold for exactly $10,000
	b.	pay no explicit interest
	c.	are quoted in terms of yield to maturity
	d.	have a stated interest rate

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