Which One of the Following Statements Is Correct Concerning a Treasury

question 85

Multiple Choice

Which one of the following statements is correct concerning a Treasury bill?

• A)The asked discount indicates the amount a bond dealer is willing to pay to purchase a Treasury bill.
• B)The asked yield on a Treasury bill is a bond equivalent yield.
• C)The asked discount for a Treasury bill is greater than the bid discount.
• D)The asked yield for a Treasury bill is computed based on a 360-day year.
• E)The bid price on a Treasury bill is computed based on a 365-, or 366-day year.