Which of the Following Is True of Money Market Instruments

question 57

Multiple Choice

Which of the following is true of money market instruments?

• A) Their yields are highly correlated over time.
• B) They typically sell for par value when they are initially issued (especially T-bills and commercial paper).
• C) Treasury bills have the highest yield.
• D) They all make periodic coupon (interest) payments.
• E) A and B

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