Which of the following securities always sell at a discount from their face values?
I. Treasury bills
II. Treasury notes
III. industrial revenue bonds
IV. bankers acceptances

Question

Quizplus · Accepted Answer

Selections I and IV will always sell at a discount from their face values. Both Treasury bills and bankers acceptances are money market instruments that make no interim interest payments. They sell below their face values, and the investor earns the difference between their face values and the price paid. Treasury notes and industrial revenue bonds make interim interest payments, and they may sell below, above, or at their face values.

Which of the Following Securities Always Sell at a Discount