Which of the following are true about Treasury Bills?
I.T-Bills are capital market instruments.
II.T-Bills sell through both competitive and noncompetitive bids.
III.T-Bill yields are quoted in the financial pages as effective annual rates of return.
IV.At the T-Bill's maturity,the holder receives the face value of the Bill.

Question

Quizplus · Accepted Answer

Option I is incorrect as Treasury Bills are actually money market instruments, not capital market instruments. Option II is correct, as T-Bills are sold through both competitive and noncompetitive bids. Option III is also correct, as T-Bill yields are quoted in the financial pages as effective annual rates of return. Option IV is correct, as the holder of a T-Bill receives the face value of the Bill at maturity. Therefore, options II and IV are true about T-Bills.

Which of the Following Are True About Treasury Bills