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Q. |
The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now. |
A. | The dollar return to the investor would be $1 if held to maturity |
B. | The investor cannot lose money, but its earnings are not known before the maturity date |
C. | The dollar return to the investor would be $3 if the T-bill is held to maturity |
D. | The investor can lose money on these T-bills if held to maturity |
Answer» C. The dollar return to the investor would be $3 if the T-bill is held to maturity |
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