Which of the following statements regarding Treasury bills (T-bills) is TRUE T-bills:
A: have maturities greater than 6 months and can be sold at a price greater than par.
B: are considered the risk-free instrument, which means there exists no interest rate risk.
C: carry no coupon.
A: have maturities greater than 6 months and can be sold at a price greater than par.
B: are considered the risk-free instrument, which means there exists no interest rate risk.
C: carry no coupon.
举一反三
- Which of the following statements is FALSE? A: The amount of each coupon payment is determined by the coupon rate of the bond. B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. C: The simplest type of bond is a zero-coupon bond. D: Treasury bills are U.S. government bonds with a maturity of up to one year.
- U.S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity.
- Which of the following statements regarding a country risk premium is TRUE A: Country risk arises from expected economic and political events. B: Firms in different countries assume significantly different financial risk. C: Exchange rate risk is relatively small and can be ignored.
- S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity. A: premium B: collateral C: default D: discount
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk