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Thinking about bonds and Treasury bills, which one of the following statements is correct? Question 9 Answer a . A Treasury bill that repays 1

Thinking about bonds and Treasury bills, which one of the following statements is correct?
Question 9 Answer
a.
A Treasury bill that repays 100,000 at the end of 91 days is sold at a discount of 1525. The annual yield on this bill is 6.21%(to two decimal places).
b.
If the discount at which a Treasury bill is sold increases, the bills yield falls.
c.
Ignoring any gain or loss when the bond is sold or redeemed, the yield on a bond with a nominal value of 100, a coupon of 2.5% and a market price of 97.50 is 2.44%(to two decimal places).
d.
A central bank can increase the yield on bonds by using a policy of quantitative easing.

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