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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