Which of the following securities typically trades on a discount basis?
A) Treasury notes
B) Treasury bills
C) Commercial paper
D) Certificates of deposit

Question

Quizplus · Accepted Answer

Treasury bills typically trade on a discount basis. This means that they are priced below their face value and pay no coupon interest. The difference between the purchase price and the face value represents the investor's return.

Which of the Following Securities Typically Trades on a Discount