Question

    Which of the following statements is true about Treasury Bills (T-Bills)?

    A They pay interest semiannually Correct Answer Incorrect Answer
    B They are issued at a premium Correct Answer Incorrect Answer
    C They are zero coupon securities Correct Answer Incorrect Answer
    D They are long term securities Correct Answer Incorrect Answer
    E They are issued by private corporations Correct Answer Incorrect Answer

    Solution

      T Bills are zero coupon securities issued at a discount and redeemed at face value, providing an implied interest yield.

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