Which of the Following Pays a Return in the Form

question 503

Multiple Choice

Which of the following pays a return in the form of a discount to face value?

• A) Treasury bill
• B) CD
• C) Interbank deposit
• D) Classic repo

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Definitions:

Estimated Cost

Estimated cost refers to the projection or approximation of the cost associated with a particular project, product, or service.

Straight-Line Depreciation

A method of depreciation where an equal amount of depreciation is allocated each year over the useful life of the asset.

Average Rate of Return

This financial ratio measures the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Estimated Annual Net Income

The projection or forecast of a company's net income over a one-year period, considering all expected revenues and expenses.