Treasury Securities. What are Treasury securities$?$ What is a T$-$bill? How is it denominated? How do you earn a return on a T$-$bill? How is the return calculated?

What are Treasury securities$?($Select the best answer below.$)$

A$.$ Equities issued by the U$.$S$.$ government.

B$.$ Equities issued by the Federal Reserve.

C$.$ Debt securities issued by the Federal Reserve.

D$.$ Debt securities issued by the U$.$S$.$ government.

T$-$bills are available with a minimum value at maturity of and are denominated in multiples of $($Select from the drop$-$down menus.$)$

You earn a return on T$-$bills by buying them at than face value and holding them to maturity or by selling them for than you paid for them in the secondary market. $($Select from the drop$-$down menus.$)$

How is the return calculated? $($Select the best answer below.$)$

A$.$ Return $=\frac{\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}\text{e}-\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}}{\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}\text{e}}$

B$.$ Return $=\frac{\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}\text{e}-\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}}{\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}\text{e}}$

C$.$ Return $=\frac{\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}\text{e}-\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}}{\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}\text{e}}$

D$.$ Return $=\frac{\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}\text{e}-\text{F}\text{a}\text{c}\text{e}\text{V}\text{a}\text{l}\text{u}}{\text{P}\text{u}\text{r}\text{c}\text{h}\text{a}\text{s}\text{e}\text{P}\text{r}\text{i}\text{c}\text{e}}$