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Government issues treasury bills at discounted rate from
Answer & Solution
Correct Answer:
Option
A
Government issues treasury bills at discounted rate from face value. U.S. Treasury bills (T-bills) are typically sold at a discount from their par value. The level of discount is determined during Treasury auctions. Unlike other U.S. Treasury securities such as Treasury notes (T-notes) and Treasury bonds (T-bonds), T-bills do not pay periodic interest at six-month intervals.
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