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.

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Definitions:

Simultaneous Move Games

A scenario in game theory where all players make their decisions or moves at the same time, without knowledge of the others' choices.

Nash Equilibrium

A concept in game theory wherein each player's strategy is optimal given the strategies of other players, resulting in no incentive to deviate unilaterally from their strategy.

Best Response

In game theory, the strategy that yields the highest payoff for a player, given the strategies chosen by other players in the game.

Strategy

A planned set of actions designed to achieve long-term or overall aims and objectives.