Government issues treasury bills at discounted rate from

A. face value

B. book value

C. premium value

D. federal value

Answer: Option A

Solution(By Examveda Team)

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.