Which of the following statements about the pricing of bankers' acceptances is true?

Question 18 options:

a)The simple interest convention is used to price bankers' acceptances, though this is inconsistent with market practice.

b)The use of the simple interest convention implies that the effective yield from investing in 3-month bankers' acceptances will be the annual quoted rate, com pounded quarterly.

c)The discount interest convention is used even though the proceeds from the bankers' acceptance cannot be reinvested at the end of every 3-month period when the bankers' acceptance matures.

d)The discount interest convention is consistent with market practice and is therefore used to price bankers' acceptances.

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