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Author Question: Which of the following are issued with the shortest time to maturity? A) Treasury bills B) ... (Read 53 times)

dbose

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on: Jul 10, 2018
Which of the following are issued with the shortest time to maturity?
 
  A) Treasury bills
  B) Treasury notes
  C) Treasury bonds
  D) Treasury stocks

Question 2

A U.S. Treasury bill is currently selling at a discount basis of 4.25. The par value of the bill is 100,000, and will mature in ninety days. What is the price of this Treasury bill?
 
  A) 95,750.00
  B) 98,937.50
  C) 98,952.05
  D) 99,952.78


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amy.lauersdorf90

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B
Explanation: B) Price = face value  1 - (discount rate  )
= 100,000  1 - (.0425  90/360) = 98,937.50


dbose

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

aliotak

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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