Question
4-What is wrong about pricing of treasury bill? Priced at a discount from their par value Price depends on the investors required rate of return
4-What is wrong about pricing of treasury bill?
Priced at a discount from their par value | ||
Price depends on the investors required rate of return | ||
Value of a T-bill is the present value of the par value | ||
Treasury bill investment yield calcuation use 360 days to annualize. |
6-What is not about US Treasury bill?
The Treasury issues T-bills with 4-week, 13-week, and 26-week maturities on a weekly basis. | ||
Issued when the U.S. government needs to borrow funds. | ||
It also issues T-bills with a 1-year maturity on a monthly basis. | ||
US treasury periodically issues T-bills with terms shorter than 4 weeks, which are called cash management notes. |
8-Which is not a theory of term structure?
Liquidity Expectation Theory | ||
Liquidity Premium Theory | ||
Expectations Theory | ||
Market Segmentation Theory |
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