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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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