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The Yield on a Discount Basis

Question 51

Multiple Choice

The yield on a discount basis:


A) Will overstate the return on a Treasury bill versus using yield to maturity since they are sold at discounts
B) Will understate the return on Treasury bills versus yield to maturity since they are sold at premiums
C) Will understate the return on Treasury bills versus yield to maturity since they are sold at discounts
D) Is the same as yield to maturity

Correct Answer:

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