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

Question

Quizplus · Accepted Answer

Treasury bills are sold at a discount, meaning the purchase price is lower than the amount received at maturity. This difference between the purchase price and the face value at maturity represents the interest earned by the investor.

Treasury Bills Pay No Interest but Are Sold at a ________