Which of the Following About the Primary Market Issue of Treasury

question 6

Multiple Choice

Which of the following about the primary market issue of Treasury bonds is NOT correct?

• A) The issues are currently managed by AOFM.
• B) Tenders will be lodged to buy the bonds in terms of yield to maturity.
• C) The minimum bid must be for a face value of $1 million.
• D) Bids are accepted in descending order: that is highest-yield first.

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Definitions:

Automated

The use of technology or machinery to perform tasks without human intervention.

Manual

A handbook or guide that provides specific information or instructions about a subject or system.

Labour

Labour refers to the human effort, whether physical or mental, expended in the production of goods and services, often considered in terms of the workforce of a business or economy.

Discounted Payback Rule

A capital budgeting technique that calculates the time required to recoup the cost of an investment, taking into account the time value of money.