In Comparing the Yield to Maturity on a Treasury Bill

question 26

Multiple Choice

In comparing the yield to maturity on a Treasury bill with the yield on a discount basis on the same bill, we can say that the yield to maturity

• A)will always be greater than the yield on a discount basis.
• B)will always be less than the yield on a discount basis.
• C)will always be equal to the yield on a discount basis, provided the holding period is the same as the number of years to maturity.
• D)rises whenever the yield on a discount basis falls.

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Definitions:

Organic Solidarity

A term in sociology introduced by Émile Durkheim, referring to the social cohesion that arises in complex societies where individuals perform specialized tasks and are interdependent.

Social Facts

Durkheim's concept referring to the values, cultural norms, and social structures that transcend the individual and can exercise social control.

Pathological Societies

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Forced Division

The artificial separation of people or groups by imposed barriers or criteria, often with negative connotations.