Q454
Difference between purchase price of treasury bills and face value of treasury bills is considered as
A.
premium
B.
discount
C.
return
AnswerD.
mean value
Answer: Option C
Solution
Answer: Option C
Solution:
Difference between purchase price of treasury bills and face value of treasury bills is considered as return. The gain is realized when the bond matures, which is the difference between the purchase price and the face value.