When a Treasury Bill Matures,the Investor Receives

question 36

Multiple Choice

When a treasury bill matures,the investor receives:

• A)a premium.
• B)the interest only.
• C)the principal only.
• D)the face value.
• E)a discount.

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Definitions:

Asset-backed Commercial Papers

Short-term investments secured by bundled assets, like loans or receivables, allowing companies to finance these assets.

Investors

Individuals or entities that allocate capital with the expectation of achieving a future financial return.

Securities

Assets which embody either ownership in a stock of a company available to the public, a lending relationship with a government or corporate entity through bonds, or claims to ownership via options.

Warrant Holder

An individual or entity that owns a warrant, giving them the right, but not the obligation, to buy a company's stock at a specified price before the warrant expires.