In Comparing the Yield to Maturity on a Treasury Bill

question 26

Multiple Choice

In comparing the yield to maturity on a Treasury bill with the yield on a discount basis on the same bill, we can say that the yield to maturity

• A)will always be greater than the yield on a discount basis.
• B)will always be less than the yield on a discount basis.
• C)will always be equal to the yield on a discount basis, provided the holding period is the same as the number of years to maturity.
• D)rises whenever the yield on a discount basis falls.

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