U.S.Treasury Bills,bankers' acceptances and commercial paper are all sold on a discount basis.

Question

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U.S. Treasury Bills, bankers' acceptances, and commercial paper are sold at a discount from their face value, meaning that the buyer pays less than the full face value of the security at the time of purchase. The difference between the face value and the purchase price represents the yield to the investor. Therefore, these securities are sold on a discount basis.

USTreasury Bills,bankers' Acceptances and Commercial Paper Are All Sold on a Discount