The Primary Difference Between U

question 66

Multiple Choice

The primary difference between U.S.Treasury bills and U.S.Treasury bonds is that the bills:

• A) do not have default risk.
• B) have more price volatility.
• C) have a shorter maturity at time of issue.
• D) offer a higher return.

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Definitions:

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used to evaluate the profitability of an investment.

Equity-Financed

Refers to funding a company's operations or projects through the sale of shares, rather than borrowing or using current assets.

Price Per Share

The market price of a single share of a company’s stock, representing the smallest unit of the company’s equity that investors can purchase.