Question 6.1:

Which of the following are typical Treasury bill maturities? Select all that apply.

A. 13 weeks

B. 15 weeks

C. 30 weeks

D. 52 weeks

Which of the following are characteristics of Treasury bills? Select all that apply.

A. Common investors in these securities are households, firms, and financial institutions.

B. They are virtually free of credit (default) risk.

C. Their typical maturities are 4 weeks, 13 weeks, 26 weeks, and 1 year.

D. They have a low degree of liquidity.

Suppose Maria requires a 4 percent annualized return on a one-year Treasury bill with a $1,000 par value. The price that Maria is willing to pay is:

A. $817.31

B. $903.85

C. $923.08

D. $961.54