An Investor in a T-Bill Earns Interest by ________

question 13

Multiple Choice

An investor in a T-bill earns interest by ________.

• A) receiving interest payments every 90 days
• B) receiving dividend payments every 30 days
• C) converting the T-bill at maturity into a higher-valued T-note
• D) buying the bill at a discount from the face value to be received at maturity