Which of the following statements about yields on short-term securities is true?
A)The yield on a Treasury note is generally higher than the interest rate on a bank overdraft.
B)The interest rate on a bank overdraft is generally less than on an inter-company loan.
C)The interest rate on an inter-company loan is generally higher than the yield on a Treasury note.
D)The yield on a Treasury note is generally higher than the interest rate on an inter-company loan.

Question

Quizplus · Accepted Answer

Treasury notes are considered very safe investments, so they typically offer lower yields compared to riskier loans like inter-company loans, which demand higher interest rates to compensate for the increased risk.

Which of the Following Statements About Yields on Short-Term Securities