The discount rate that is required by the dealer if he is to purchase the T-bill and add it to his portfolio is called the
A) Discount rate
B) Bid rate
C) Ask rate
D) Investment rate
E) None of the above

Question

Quizplus · Accepted Answer

The bid rate is the discount rate that a dealer is willing to pay to purchase a T-bill. It represents the dealer's required return on investment for adding the T-bill to their portfolio.

The Discount Rate That Is Required by the Dealer If