Which one of the following is used by Treasury dealers to indicate the price they are willing to pay to purchase a Treasury bill? Select one: a. par rate b. face rate c. bid discount d. bank discount e. asked discount

Which one of the following is used by Treasury dealers to indicate the price they are willing to pay to purchase a Treasury bill? Select one: a. par rate b. face rate c. bid discount d. bank discount e. asked discount

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 8DQ

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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.

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